Petrol price up by Re1, diesel Rs7 per litre

ISLAMABAD: In view of price fluctuation in the international market, the federal government on Friday increased the rate of petrol by Re1 to Rs257.13 per litre for the next 15 days.

According to a notification issued by Ministry of Finance, the price of high-speed diesel (HSD) has been increased by Rs7 to Rs267.95 per litre.

“The Oil & Gas Regulatory Authority (Ogra) has reviewed and adjusted consumer prices for petroleum products in view of recent fluctuations in the international oil market,” read the notification.

Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting. On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.

The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.

Meanwhile, the government increased liquefied petroleum gas (LPG) prices by Rs3.68 per kilogramme (kg) for both domestic and commercial consumers for the month of February, 2025.

The revised pricing structure comes into effect on February 1 (today).

According to a notification issued by the Oil and Gas Regulatory Authority (Ogra) on Friday, the price of an 11.8 kg domestic LPG cylinder has been increased to Rs2,997, up from Rs2,953. Similarly, the cost of a commercial LPG cylinder (45.4 kg) has been increased by Rs167, now priced at Rs11,530 compared to the previous rate of Rs11,363.

The Ogra attributed this consistent escalation to two key factors: devaluation of Pakistani rupee against US dollar and an increase in the prices of propane and butane, the principal components of LPG, by Saudi Aramco.

“The LPG producer price is linked with Saudi Aramco-CP and US$ dollar exchange rate. As compared to previous month Saudi Aramco-CP has increased prices by 1.6 per cent. The average dollar exchange rate has slightly increased by 0.19 per cent resulting to increase in LPG consumer price by Rs.43.52/11.8 kg cylinder (1.47 per cent). The per kg increase in LPG consumer price is Rs.3.68,” the regulator said. Reports suggest that LPG is still being sold at rates exceeding Rs300 per kg in several areas, including Islamabad. While Ogra’s notification confirms the new price structure, the regulator has faced criticism for its inability to enforce these rates effectively.