Pakistan caretaker govt hikes petrol price by PKR 2.73 per litre

A statement issued by Finance Division reads, "Government of Pakistan has decided to bring changes in the current prices of Petroleum products for the fortnight starting on February 2024," Geo News reported. According to the notification, the price of high-speed diesel has been hiked by PKR 8.37 per litre to PKR 287.33 per litre.

The new prices, as recommended by the Oil and Gas Regulatory Authority (OGRA) have taken effect from midnight (February 16) and will remain in place until February 29, Geo News reported. According to the news report, the rise in prices of petrol and high-speed diesel was expected after the exchange of rate adjustment.

The rise in fuel prices comes amid the alarming situation in the Red Sea where Houthis target and restrict the movement of vessels and other ships, Geo News reported citing official sources.

Earlier on January 31, Pakistan's caretaker government increased the petrol price by Pakistani Rupees (PKR) 13.55 per litre to PKR 272.89 for the next fortnight, Pakistan-based Dawn reported. The price of high-speed diesel (HSD) was increased by PKR 2.75 to PKR 278.96 per litre.

The notification did not mention any changes in the prices of light-diesel oil (LDO) and kerosene oil. The petrol price increase is higher than what was expected earlier. The prices of petrol and HSD were estimated to go up by PKR 5-9 per litre for the next fortnight due to higher international prices and import premiums, nullifying the impact of minor exchange rate gains.

The prices of both major petroleum products had increased in the international market over the past fortnight and Pakistan State Oil (PSO) also had to pay higher import premiums even though the rupee had gained against the US dollar, Dawn reported citing sources. (ANI)