Islamabad: On Wednesday night, the federal government announced to increase the petroleum prices. According to the new notification, the price of petrol has gone up by Rs5 per litre, whereas the rate of high-speed diesel (HSD) surged by Rs13 per litre. The new prices got effective on March 16, 2023.
The statement by the finance ministry explained the reason for the hike in petrol prices. The ministry claimed that the increment in prices of Platts Singapore and depreciation of Pakistani rupee pushed the rates of POL products.
New Petroleum Product Rates:
As per the notification by the finance ministry, the new rate list applicable from March 16, 2023:
- Petrol: Available at Rs272 per litre (previous price was Rs267 per litre) HSD: Available at Rs293 per litre (previous price was Rs280 per litre)
- Kerosene oil: Available at Rs190.29 per litre (previous price was Rs187.73 per litre)
- Light Diesel Oil (LDO): Available at Rs184.68 per litre (prices remained unchanged)
Depreciation of Pakistani Rupee
The devaluation of the local currency has once again affected oil consumers. During the first fortnight of March, the Pakistani rupee lost Rs15.97 in value and traded at Rs278.97 against the US dollar (from Rs262.14).
The petroleum levy imposed by the government on petrol and HOBC is Rs50 per litre.
Decreasing the Petrol Prices in February
Earlier, the federal government gave a little relief to the public by decreasing the petrol price to Rs267 per litre (a drop of Rs5 per litre). The decision was not anticipated as the market expected that the rates would go up because of the demands laid by the International Monetary Fund (IMF). Note that the deal between Pakistan and IMF has not been finalised. However, news reports stated that proceedings are moving further to unleash the loan tranche from the global money lender.