The federal government on Sunday notified an increase to the prices of petrol and high-speed diesel for the next fortnight, effective from Feb. 16, with the rates rising by Rs. 5/liter and Rs. 7.32/liter, respectively.
According to the notification issued by the Petroleum Division, petrol will now cost Rs. 258.17/liter, up from Rs. 253.17/liter, while diesel will cost Rs. 275.70/liter, up from Rs. 268.38/liter. In the previous review, the federal government had raised the price of high-speed diesel by Rs. 11.30/liter while keeping the rates for petrol unchanged.
In its notification, the Petroleum Division said the revisions were in line with international markets and recommendations of the Oil and Gas Regulatory Authority (OGRA).
The transport sector is heavily reliant on diesel and increases to its prices are considered inflationary, impacting essential commodities. Private commuters primarily rely on petrol, with increases to its prices significantly impacting middle and lower-middle class households.
Apart from the base rate of petroleum products, the government is presently collecting roughly Rs. 87/liter on petrol and Rs. 79/liter on diesel in the form of petroleum development levy, including Rs. 2.5/liter in the form of climate support levy. The government is likewise charging around Rs. 17-18/liter in custom duty on both petrol and diesel and around Rs. 17/liter is earmarked for distribution and sale margins of oil companies and dealers.