The federal government has announced new prices of petrol and high-speed diesel, reviewing the prices of petroleum products in the context of continuous fluctuations in international crude oil prices. Officials say the recent changes have been made due to the uncertainty in the global energy market.
According to a statement issued by the Petroleum Division, the price of petrol has been increased by Rs 3.66 per litre, while the price of high-speed diesel has been increased by Rs 4.80 per litre. After this decision, petrol will be sold at Rs 335.18 per litre and high-speed diesel at Rs 383.46 per litre. The new prices have been implemented from July 25.
According to the government, the local rates have been adjusted keeping in mind the changes in global crude oil prices, import costs and market trends. Officials maintain that the current formula aims to keep local prices in line with the global market.
In recent months, the government has also changed the system for determining the prices of petroleum products. Now the Oil and Gas Regulatory Authority (OGRA) has the authority to review prices on a daily basis according to the global market situation, while earlier the prices were announced on a weekly basis.
On the other hand, the All Pakistan Petroleum Dealers Association has expressed reservations about the daily pricing system. The organisation says that this method may cause uncertainty for both business activities and consumers, which is why it is consulting on its future course of action.
According to economists, the increase in petrol prices affects citizens using motorcycles, rickshaws and private vehicles the most, while the increase in diesel prices is likely to increase the costs of freight, the agricultural sector, power generation and industrial activities, which may ultimately have an impact on the overall inflation situation.
Pakistan meets a large part of its energy needs from imported oil, which is why even a slight change in prices in the global market affects local fuel prices. Experts say that if uncertainty persists in the international crude oil market, further changes in the prices of petroleum products are not out of the question in the coming days.