The recent announcement of a hike in fuel prices in Pakistan has many consumers concerned about the impact on their daily lives. On the first day of the New Year, the prices of diesel and petrol were increased, while the rate of liquefied petroleum gas (LPG) was lowered, according to a notification issued by the finance ministry.
Diesel and Petrol Prices Increase
The price of high-speed diesel (HSD) saw a significant increase of Rs2.96 per litre, bringing it up to Rs258.34 per litre. Similarly, the price of motor spirit (MS) or petrol was raised by Rs0.56 per litre, reaching Rs252.66 per litre. These price hikes come as a result of fluctuations in the international market, as per the Oil and Gas Regulatory Authority (Ogra).
Impact on Consumers
The increase in diesel prices may have an inflationary impact, especially in sectors like transport and agriculture that heavily rely on this fuel. Petrol, on the other hand, is widely used in motorbikes and cars, and any price increase, no matter how slight, can affect consumers. Furthermore, the ban on indigenous gas in Punjab has led to an increased demand for petrol as an alternative fuel to compressed natural gas (CNG).
Reduction in LPG Prices
In contrast to the fuel price hikes, the price of an 11.8 kg LPG cylinder has been reduced by Rs47.43, making it more affordable for consumers. This reduction is attributed to changes in the Saudi Aramco-CP price and the dollar exchange rate, resulting in a 1.58% decrease in the LPG consumer price.
Factors Contributing to Price Increases
Officials have mentioned that the premium on petroleum products, along with the petroleum levy paid by consumers, has led to the recent price hikes. The calculation of these price increases takes into account factors like the current level of petroleum levy, general sale tax (GST), zero exchange rate, and inland freight equalization margin (IFEM).
In conclusion, while the recent fuel price hikes may cause concern among consumers, the reduction in LPG prices offers a small reprieve. Keeping an eye on these fluctuations and understanding the factors contributing to price changes can help individuals better navigate the impact on their daily lives.
