In a move that will make petrol and high speed diesel more expensive, the federal government has raised the price of both after a day of cuts. The new prices will effect from Wednesday, July 29.
The price hike for petrol will be Rs 1.63 per litre and for high-speed diesel, it will be Rs 1.55 per litre, according to a notification issued by the Petroleum Division. The government says these prices will only apply from July 29.
Considering the recent tension in the region, changes in global crude oil markets and uncertainty in international markets, the government has decided to set the price of petroleum products daily.
The new policy will switch the price announcement process from the Oil and Gas Regulatory Authority (OGRA) to the Prime Minister and the federal cabinet and will allow prices to be fixed daily, without the need for prior approval from the Prime Minister and the federal cabinet.
This latest increase comes at a time when the government had reduced the price of petrol by Rs 1 per litre for July 28, but on the same day the price of high-speed diesel was increased by Rs 3.37 per litre, after which diesel has become more expensive for the second consecutive day.
According to experts, the effect of fluctuations in the prices of crude oil in global markets will now be felt in the local market sooner than before, in the new system of daily pricing. This, in turn, could result in ever-changing fuel costs for consumers.
The higher prices of petrol and diesel in the recent past are expected to further drive up the transport cost and consequently, affect the prices of essential commodities. The business community and the public are now closely monitoring the daily oil price decisions by the government in the coming days, especially oil prices abroad.