Pakistan to increase petroleum prices amid economic challenges

The Caretaker govt is set to raise petroleum product prices following a recent hike in electricity costs. The proposed increases are Rs 4.50 per liter for gasoline, Rs 2.50 for diesel, and Rs 2.92 for kerosene, with light diesel oil prices remaining unchanged.

This decision comes after the National Electric Power Regulatory Authority (NEPRA) approved a Rs 7.05 per unit rise in electricity prices due to higher fuel costs, adding an estimated Rs 66 billion burden on consumers. The increase in fuel prices is linked to the surge in global crude oil prices, now at $82.52 per barrel.

Scheduled to be announced by the Finance Minister after consultation with the Prime Minister, the new fuel prices will take effect from March 1st, 2024, until March 15th. This move has sparked concerns over rising inflation and the added financial pressure on households, especially for low-income and middle-class families.