File photo. Asif Hassan—AFP
The interim federal government on Sunday announced it is maintaining the existing prices of petrol and high-speed diesel for another fortnight—till Jan. 15—as per recommendations of the Oil and Gas Regulatory Authority (OGRA).
“The government of Pakistan has decided to maintain the current prices of petrol and high speed diesel during the fortnight starting from [Jan. 1, 2024], as recommended by [the] Oil and Gas Regulatory Authority (OGRA),” read the Finance Division statement notifying the decision.
According to the notification, the price of petrol would be retained at Rs. 267.34/liter and high-speed diesel oil at Rs. 276.21/liter. Meanwhile, the price of kerosene oil has been reduced by Rs. 2.19/liter from Rs. 191.02/liter to Rs. 188.83/liter, while the tariff for light diesel oil has increased by Rs. 1.11 from Rs. 164.64 to Rs. 165.75/liter.
Over the past two weeks, oil sector observers had noted no significant fluctuations in the prices of global crude, while the rupee-dollar parity has also remained largely stagnant, justifying the decision to retain the prices of petrol (primarily used in private vehicles) and diesel (primarily impacting the transport sector).
This is a welcome development for Pakistan’s consumers and foreign exchange reserves alike, as more than 70 percent of the country’s petroleum demand is met through imports. In November 2023, the country saw a 5.76% year-on-year increase in its import bill for petroleum products, or roughly $1.32 billion, accounting for 29.76% of its total import bill for the month.
Over the past year, petrol and diesel prices have increased by around Rs. 50/liter, as they opened 2023 with Rs. 214.8/liter for petrol and Rs. 227.8/liter for diesel.