Today, Pakistan’s federal government announced a rise in fuel prices, effective from November 1, 2024, for the next two weeks. As per the Finance Ministry’s notification, petrol will now cost Rs. 248.38 per liter, up from Rs. 247.03 per liter, reflecting a small increase. Diesel prices have also been raised, with the new rate set at Rs. 255.14 per liter, marking an increase of Rs. 3.85 from the previous rate of Rs. 251.29 per liter.
Earlier Predictions on Petrol Price Trends
Earlier this week, media sources suggested that Pakistani consumers might expect relief from the high fuel prices that have persisted in recent months. The reports indicated that a dip in international crude oil prices could lead to reductions in domestic petrol and diesel prices for November.
Globally, the average cost per barrel for petrol fell from $77.5 to $76, while high-speed diesel prices dropped from $86.5 to $84. This international decline, coupled with steady import premiums, seemed to suggest a likely reduction in domestic fuel prices.
Anticipated Price Reductions That Didn’t Materialize
Officials had previously projected that starting November 1, petroleum product prices might see a slight drop, with petrol expected to fall by around Rs. 3 per liter and diesel by Rs. 2.30 per liter, based on current exchange rates and tax structures. However, the latest announcement reflects a contrary decision to increase prices instead of the anticipated decrease.
Two weeks ago, on October 15, the government had already raised the high-speed diesel (HSD) price by Rs. 5 per liter due to international market shifts, bringing it from Rs. 246.29 to Rs. 251.29 per liter. Petrol prices, however, were kept steady at Rs. 247.03 per liter at that time.
Impact on Inflation and the Economy
With fuel costs directly affecting the inflation rate in Pakistan, this latest price adjustment is expected to add further strain to the already high cost of living. Fuel prices typically influence the costs of goods and services across the economy, so any rise has a direct impact on consumers’ expenses.
Your Views
What are your thoughts on this recent price hike? Will it impact inflation in Pakistan? Share your opinions in the comments section below.
