Petrol, diesel prices in Pakistan surge past 300-mark

As the nation grapples with high electricity bills, the caretaker government late Thursday jacked up the petrol and diesel prices by over Rs14. 

The Finance Division said the hike was due to the “increasing trend of petroleum prices in the international market and exchange rate variations”.

The Finance Division said that the price of petrol will go up by Rs14.91 per litre, and the price of high-speed diesel (HSD) by Rs18.44 per litre. Now, the price for one litre of petrol will be Rs305.36, and HSD price will be Rs311.84.

The local currency is at an all-time low following an easing in import restrictions that has increased the greenback's demand and rising risks associated with financing the country’s current account deficit.

The rupee has lost over Rs15 in the interbank market since the formation of the caretaker government which is tasked with overseeing at least one review of the International Monetary Fund (IMF) $3 billion standby arrangement; and steering the country through to a national election that is in theory due to take place by November.

Earlier today, The News had reported that the interim government was likely to increase the price of petrol and diesel citing sources in the oil industry.

According to the working of the oil industry, regarding the ex-depot prices of petroleum prices, the price of petrol and high-speed diesel would likely record a substantial increase. The government would review the prices of petroleum prices on Thursday night under the fortnightly review of the prices’ formula.

On August 1, the government had raised the price of petrol by Rs19.95/litre and of high-speed diesel by Rs19.90 per litre. 

On August 16, the price of petrol price was raised by Rs17.50 per litre and the price of high-speed diesel was increased by Rs20 per litre.