In a brief televised address on Sunday morning, Finance Minister Ishaq Dar announced a hefty increase to the prices of fuel products—three days ahead of the scheduled fortnightly announcement—raising the prices of petrol and diesel by Rs. 35 each.
According to Dar’s announcement, petrol prices have been raised from Rs. 214.80 to Rs. 249.80, while high-speed diesel has now risen from Rs. 227.80 to Rs. 262.80. Similarly, the price of kerosene oil rose by Rs. 18, from Rs. 171.83 to Rs. 189.83, while light-diesel oil would now cost Rs. 187, compared to Rs. 169 previously. The price revision also came into effect immediately compared to the next-day implementation that is usually exercised for such raises.
The Rs. 35/liter increase to the price of petrol is the single-highest jump of the tariff in the country’s history. According to Dar, the decision to announce the price revision early was motivated by social media reports of petrol prices being increased by Rs. 47-80/liter, which had led to retailers hoarding fuel and creating an “artificial shortage.” He also deflected any responsibility for the price increase by attributing it to the central bank’s actions, including the rupee’s depreciation, and a rise in international oil prices.
According to the Finance Division’s date, the government has also increased the petroleum development levy (PDL) on high-speed diesel by Rs. 5/liter to Rs. 40, which is still Rs. 10 short of the Rs. 50 commitment the government made with the IMF in April 2023.
Despite Dar’s claims, however, there was little indication that filling stations were able to benefit from the decision, as reports of shortages persisted, allegedly due to mismanagement of the supply chain.