Government Announces Bi-Weekly Price Review
The federal government of Pakistan has announced new petroleum product prices for the next 15 days. In a statement issued by the Ministry of Finance, authorities confirmed that petrol prices will remain unchanged while diesel will see a price hike.
This bi-weekly review is part of the government’s regular pricing mechanism, which takes into account global oil prices and the value of the Pakistani rupee against the U.S. dollar.
Petrol Price Maintained at Current Level
According to the official notification, the price of petrol will remain steady at PKR 264.61 per litre. The government stated that keeping petrol prices unchanged would provide some relief to consumers already facing high inflation.
Petrol is the most widely consumed fuel in Pakistan, particularly in private vehicles and motorcycles, making its pricing a politically sensitive issue. Any change in petrol prices often sparks strong public reaction and has direct consequences for transport costs across the country.
Diesel Price Increased by PKR 2.78
In contrast, the price of high-speed diesel has been increased by PKR 2.78 per litre, bringing the new rate to PKR 272.77 per litre. Diesel is the primary fuel for heavy transport vehicles, agricultural machinery, and goods carriers.
Analysts note that even small increases in diesel prices have a ripple effect on Pakistan’s economy. Transporters often pass additional costs to consumers, leading to higher prices of essential goods, including food staples. Farmers also face increased expenses during crop cultivation and harvesting, where diesel is heavily used.
Prices Effective for 15 Days
The revised rates will remain in effect for the next 15 days. The government will conduct another review at the end of this period, adjusting prices according to international crude oil trends and exchange rate fluctuations.
Pakistan follows a bi-weekly price adjustment formula to align domestic rates with global market dynamics. This mechanism was introduced to ensure that changes in international prices are reflected promptly, though it also exposes local consumers to frequent price volatility.
Global and Domestic Context
Pakistan is a net importer of petroleum products and depends heavily on international oil supplies to meet domestic demand. As a result, global price swings directly impact the local market. Similar trends have also been observed in other fuel categories, with analysts warning that petrol, diesel and gas prices are likely to rise if global crude rates remain volatile.
Recent weeks have seen modest fluctuations in global crude oil prices, with Brent crude averaging around USD 92–94 per barrel. At the same time, the Pakistani rupee has experienced pressure in the currency market, further complicating government efforts to stabilize domestic fuel costs.
High energy prices have been a major driver of inflation in Pakistan. In August 2023, year-on-year inflation stood at over 27%, one of the highest in South Asia, with fuel costs contributing significantly. Rising energy prices also add to fiscal pressure, as the government balances public relief measures with commitments to international lenders like the International Monetary Fund (IMF).
Public Reaction and Economic Impact
While the decision to hold petrol prices steady may bring temporary relief, the diesel hike is likely to trigger concern among transporters, traders, and farmers. Previous increases have often led to calls for subsidies or protests from transport unions.
Economists warn that sustained high fuel prices could further weaken consumer purchasing power, slow economic activity, and worsen the cost-of-living crisis already affecting millions.
Looking Ahead
The government has promised that future pricing decisions will remain linked to market realities and fiscal needs. Officials emphasize that the pricing formula is designed to maintain transparency and avoid abrupt shocks.
However, with the global oil market still uncertain and domestic economic conditions fragile, fuel prices in Pakistan are expected to remain a contentious issue in the months ahead.
