Islamabad: The federal government has raised petrol prices by Rs3.72 per litre, effective December 1, citing fluctuations in global oil prices.
The price of high-speed diesel (HSD) has also been increased by Rs3.29 per litre, while kerosene oil and light diesel oil (LDO) have seen marginal reductions of Rs0.62 and Rs0.48 per litre, respectively.
According to a statement from the Finance Ministry, the Oil and Gas Regulatory Authority (Ogra) determined the revised prices based on international market trends. As a result, petrol prices have risen from Rs248.38 to Rs252.10 per litre, and HSD now costs Rs258.43 per litre, up from Rs255.14.
The demand for petrol has grown over the years, especially in Punjab, where compressed natural gas (CNG) stations now rely on imported gas, which is significantly more expensive than locally sourced supplies. This has rendered CNG uncompetitive in the province, shifting reliance to petrol.
HSD, widely used in the transportation and agriculture sectors, plays a critical role in these industries, making price changes particularly inflationary.
In contrast, kerosene oil, primarily used in remote areas for cooking and heating, especially in northern Pakistan, has dropped in price from Rs165.60 to Rs164.98 per litre. The Pakistan Army remains a key user of kerosene oil in these cold regions. Similarly, LDO, which serves the industrial sector, has seen a reduction from Rs152.21 to Rs151.73 per litre.
The revised prices also include the Inland Freight Equalization Margin (IFEM), set at Rs7.50 per litre for petrol and Rs4.15 per litre for HSD. The premium on petrol imports, currently $9.80 per barrel, has contributed to the increase in prices.
In a previous price review, the government absorbed higher oil costs within the IFEM to shield consumers from the full impact of inflation. However, the petroleum levy, set at Rs60 per litre for both petrol and HSD, remains a significant component of fuel pricing. This levy helps the government manage current expenditures.
Meanwhile, Ogra has announced a slight increase in Liquefied Petroleum Gas (LPG) prices for December, attributing it to minor fluctuations in the exchange rate. While the Saudi Aramco Contract Price (CP) for LPG remained unchanged, a 0.05% rise in the average dollar exchange rate has led to a marginal hike in consumer prices.
For December, the price of an 11.8 kg LPG cylinder has increased by Rs1.32, reaching Rs3,000.79, compared to Rs2,999.47 in November. The producer price for the same cylinder now stands at Rs2,513.45, up from Rs2,512.13. On a per-kilogram basis, the increase amounts to Rs0.11.
These adjustments reflect ongoing efforts to balance international market pressures with domestic consumer affordability.
