In a move that defies expectations, the government announced an increase in petrol and high-speed diesel (HSD) prices for the next fortnight, despite falling prices in the global oil market. Effective until November 15, the price of petrol will rise by Rs1.35 per litre, bringing it to Rs248.38, while HSD will see a Rs3.85 increase to Rs255.14 per litre, according to a late-night statement by the Ministry of Finance on Thursday.
This increase comes amid a backdrop of global oil price reductions, where the average price of petrol dropped to $76 per barrel from $77.5, and HSD fell to $84 from $86.5 per barrel since mid-October. The government, however, opted to implement only a partial price increase on October 15, in hopes that future quarters would bring lower costs. This led to inventory losses for oil companies, which subsequently pressured the government to adjust prices upwards to address the pricing backlog.
The Oil and Gas Regulatory Authority (OGRA) outlined that import premiums on petrol and HSD remained relatively stable, with both products taxed at Rs76 per litre, inclusive of a Rs60 petroleum development levy and Rs16 customs duty. Dealer margins account for an additional Rs17 per litre.
In contrast to petrol and diesel, prices for light diesel and kerosene were slightly reduced by Rs2.61 and Rs1.48 per litre, respectively, offering minor relief to consumers.
Separately, OGRA has also raised the price of liquefied petroleum gas (LPG) by Rs2.88 per kilogram for November, with an 11.8kg cylinder now priced at Rs2,999.47. The adjustment was influenced by a 1.6 per cent increase in Saudi Aramco Contract Prices (CP), despite a minor 0.19pc decrease in the dollar exchange rate.
The new prices reflect the government’s balancing act between managing domestic revenue needs and the volatility of international energy costs.