ISLAMABAD: The government has announced a hike in the prices of petrol and high-speed diesel (HSD), effective immediately, for the fortnight ending January 15. Petrol now costs Rs255.66 per litre, a 56-paise increase, while HSD has risen by Rs2.96 per litre to Rs258.34.
In contrast, the Oil and Gas Regulatory Authority (OGRA) has reduced the price of liquefied petroleum gas (LPG) by Rs4.01 per kilogram, lowering the cost of an 11.8kg cylinder to Rs2,953.36 from Rs3,000.79 in December.
The Ministry of Finance attributed the price adjustments to recent international market fluctuations. The increased HSD price, widely used in heavy transport and agriculture, is likely to drive up inflation by affecting the cost of goods and food items. Petrol, commonly used in private vehicles and two-wheelers, directly impacts middle and lower-income groups.
Currently, the government imposes a Rs60-per-litre petroleum development levy and Rs16 customs duty on both petrol and HSD, along with Rs17 per litre distribution and sales margins.
OGRA linked the LPG price drop to a 2% decrease in Saudi Aramco’s contract price and a marginal 0.12% increase in the exchange rate, resulting in a 1.58% reduction for consumers.
Story by Khaleeq Kiani
