Petrol, diesel prices increased for the rest of February 2024

ISLAMABAD: In a significant development poised to impact the wallets of Pakistani citizens, the price of petrol has witnessed an increase of Rs2.73 per litre, now standing at Rs275.62.

Concurrently, the diesel price in Pakistan has surged by Rs8.37 per litre, reaching Rs287.33. This marks a notable change from the previous rate of Rs278.96 per litre for diesel.

Prior to this adjustment, various reports from Pakistani news outlets presented a varied outlook on potential price hikes.

The prevailing consensus suggested a moderate increase, with most anticipating a rise not exceeding Rs2 per litre for petrol. However, some sources hinted at a more substantial hike, possibly reaching up to Rs5 per litre.

Before the price adjustment on February 15, 2024, the ex-depot price of petrol in major cities including Lahore, Islamabad, Rawalpindi, Multan, Sialkot, Sahiwal, Narowal, Gujranwala, and Faisalabad stood at Rs272.89 per litre. Meanwhile, diesel was priced at Rs278.96 per litre prior to the recent change.

It is noteworthy that the government, in its pursuit to fulfill commitments with the International Monetary Fund (IMF), has already reached the maximum permissible limit of Rs60 per litre as the petroleum levy on both petrol and High-Speed Diesel (HSD).

The ongoing effort to collect Rs869 billion as petroleum levy during the current fiscal year is progressing well, with approximately Rs475 billion already collected in the first half (July-December), despite the gradual increase in per litre levy.

The anticipated consequences of the diesel and petrol price hikes are expected to further burden the already inflation-hit masses of Pakistan.

The populace is grappling with high food prices and elevated inflation, and this additional financial strain is likely to compound their challenges.