The inflation-hit masses of Pakistan are likely to face another price hike as the Shehbaz Sharif-led government is expected to increase the prices of petrol and diesel starting from February 1, 2025. The looming price hike comes in the wake of a surge in global crude oil prices, which has raised concerns about further increases in the cost of petroleum products across the country.
Expected Price Hikes
According to reliable sources, petrol prices may increase by Rs3 per litre, while high-speed diesel (HSD) is expected to see a more significant increase of Rs6 per litre in the upcoming fortnightly review. This rise will contribute to the ongoing financial strain felt by consumers as fuel prices continue to fluctuate in line with global trends.
Ogra’s Role in the Adjustment
The Oil and Gas Regulatory Authority (Ogra) is set to submit a summary to the relevant ministry, recommending price adjustments based on trends in international oil prices and fluctuations in the exchange rate. The final decision will be taken after discussions between Finance Minister Muhammad Aurangzeb and Prime Minister Shehbaz Sharif. An official announcement regarding the price revision is expected to be made by January 31, 2025.
Previous Price Hike
In the previous review, the government had already raised petrol prices by Rs3.47 per litre, bringing the new rate to Rs256.13 per litre. Similarly, the price of HSD had been increased by Rs2.61 per litre, resulting in a revised rate of Rs260.95 per litre.
Impact on the Public
The potential price hikes, coming on top of existing inflationary pressures, are expected to have a profound impact on the daily lives of Pakistanis. With transportation costs increasing, the cost of goods and services across various sectors is also expected to rise. Consumers, especially those dependent on public transport and vehicles for their daily commute, are likely to feel the effects most acutely.
The government’s decision on the price adjustment will likely be scrutinized by opposition parties and the public alike, given the broader economic context in which these hikes are taking place.
As Pakistan grapples with rising inflation and fuel costs, the government’s ability to strike a balance between domestic pricing and international market trends will continue to be a key challenge.
