Govt keeps petrol price unchanged for next fortnight

ISLAMABAD: The caretaker federal government Sunday decided to maintain the petrol price at Rs267.34 per litre for the next fortnight — till January 15.

In a notification, the Finance Division said: “The government of Pakistan has decided to maintain the current prices of petrol and high speed diesel during the fortnight starting from 1st January, 2024, as recommended by Oil and Gas Regulatory Authority (Ogra).”

After the revision, the price of Kerosene oil now stands at Rs188.83 after a reduction of Rs2.19 per litre while Light Diesel Oil will be sold at Rs165.75 as the government has increased the commodity’s price by Rs1.11.

Earlier, oil sector experts indicated that global crude prices didn't experience significant fluctuations during the last fortnight, and the dollar rate remains essentially unchanged from the previous fortnight with a slight reduction.

Pakistan relies heavily on imported petroleum products, with more than 70% of its demand met through imports. The country witnessed a 5.76% year-on-year increase in the petroleum group import bill for November 2023. The bill amounted to $1.32 billion, up from $1.25 billion in the same period last year, indicating a steady rise in the country's oil expenditure.

Petroleum products accounted for 29.76% of the total import bill in November 2023.

The increase in petroleum product prices during the first quarter of this fiscal year led to a significant drop in consumption. However, the second quarter witnessed stabilisation or even decreases in petroleum product prices, which pushed up consumption in November this year.