Petrol price hiked by Re1 per litre for next fortnight

• Decision based on recommendations of Ogra, ministries
• Previously, govt kept petroleum prices unchanged.
• World oil markets retreat on Opec+ speculations.

The federal government has increased the petrol price by only Re1 for the next 15 days, raising it to Rs253.63 per litre amid mostly tame global oil markets.

The Finance Division issued a notification stating that the new petrol price will take effect from June 1.

However, the price of high-speed diesel (HSD) was kept unchanged at Rs254.64 per litre.

Two weeks ago, the government kept the petrol price unchanged for the next fortnight at Rs252.63 per litre; however, it slashed the HSD price by Rs2 per litre.

US crude futures fell on Friday as traders expected Opec+ would decide on Saturday to boost oil output for July beyond previous forecasts. Brent crude futures settled down 25 cents, or 0.39%, at $63.90 a barrel.

West Texas Intermediate crude finished down 15 cents, or 0.25%, at $60.79 a barrel, having earlier dropped more than $1 a barrel.

Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of middle- and lower-middle-class members, who primarily use petrol for commuting.

On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers. The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.