In a recent move that has become all too familiar for consumers, the caretaker government announced a further increase in petrol prices, marking the third consecutive fortnightly hike. According to the latest notification from the Finance Division, petrol prices have been adjusted upwards by Rs4.13 per litre, setting the new price at Rs279.75 per litre. This adjustment reflects the ongoing volatility in global oil markets and its ripple effects on local fuel costs.
The Benchmark Oil Index Brent Crude Oil is currently trading at $81.93 at (2:23 am Friday, 1 March 2024 (GMT+5) Time in Pakistan)
STEADY PRICES FOR HIGH-SPEED DIESEL
While petrol prices have seen another rise, the price of High-Speed Diesel (HSD) remains unchanged, holding steady at Rs287.33 per litre. This decision to maintain diesel prices suggests a strategic approach by the government to balance fuel affordability with economic pressures from the global market.
PRICING STRATEGY FOR THE FIRST HALF OF MARCH
The revised fuel prices, effective for the first half of March, are based on the recommendations from the Oil and Gas Regulatory Authority (OGRA). This adjustment comes in the wake of a global increase in oil prices, prompting the government to recalibrate local fuel prices accordingly.
FEBRUARY 08, 2024: THE DAY OF RECKONING
RECENT PRICE TRENDS
Reflecting on the recent price adjustments, the last fortnight also saw a Rs2.7 per litre increase in petrol prices, while diesel prices were up by Rs8.4 per litre. February alone witnessed a significant cumulative increase of Rs16.28 per litre for petrol and Rs10.87 per litre for HSD, underscoring the challenges faced by consumers and the economy alike due to fluctuating global oil prices.
THE RECENT TREND IN CRUDE OIL TRADING AND ANALYSTS’ OPINIONS
Earlier on February 15, 2024, in response to the global increase in oil prices, the government raised the prices of petrol and High-Speed Diesel (HSD) for the second consecutive fortnight.
The price of petrol was increased by Rs2.73 per litre to Rs275.62, while HSD saw a hike of Rs8.37 per litre, reaching Rs287.33. These adjustments, effective for the latter half of February ending with the leap year on 29 February, 2024, were based on the recommendations of the Oil and Gas Regulatory Authority (OGRA). Following the previous fortnight’s significant increases—petrol by Rs13.55 per litre and diesel by Rs2.5 per litre—the latest changes were announced in a notification issued by the Finance Division.
