The federal government of Pakistan has announced another increase in petroleum prices, effective from January 1, 2025. The new prices reflect a modest increase, with petrol now priced at Rs 252.66 per litre after a 56 paisa hike and high-speed diesel (HSD) set at Rs 258.34 per litre, marking an increase of Rs 2.96.
These revised rates will remain in effect for the next 15 days, following the fortnightly price review conducted by the Ministry of Finance. The adjustments are attributed to fluctuations in global oil prices and changes in domestic tax policies.
Key Highlights:
• Petrol: Increased by 56 paisa, now priced at Rs 252.66 per litre.
• High-Speed Diesel (HSD): Increased by Rs 2.96, now priced at Rs 258.34 per litre.
Context and Impact
The hike in petroleum prices comes amidst continuous pressure from global oil market trends and Pakistan’s domestic economic challenges. The fortnightly review initially suggested a larger increase of Rs 3.62 for diesel and a minimal 11 paisa hike for petrol. However, the final adjustments resulted in a slightly lower-than-expected increase for diesel, while petrol saw a more notable revision.
These price changes are likely to impact transportation costs and daily expenses, placing additional financial strain on households and businesses across Pakistan. As diesel is a key fuel for freight and public transport, its increased price will ripple through supply chains, potentially affecting the cost of goods and services.
The government’s recent series of petroleum price hikes underscores the country’s reliance on imported energy and the volatility of global oil markets. Policymakers are under increasing pressure to find solutions to stabilize fuel prices and minimize their impact on the public.
The increase in petrol and diesel prices for the first half of January 2025 adds to the financial burden on consumers and businesses. With global oil prices remaining uncertain, further adjustments in the coming months could significantly influence the economy and public sentiment.
