ISLAMABAD: The federal government has raised petrol prices by Rs 3.72 per litre, effective December 1, citing fluctuations in global oil prices.
The price of High Speed Diesel (HSD) was also increased by Rs 3.29 per litre, while kerosene oil and light diesel oil (LDO) saw marginal declines of Rs 0.62 and Rs 0.48 per litre, respectively.
According to a statement issued by the Ministry of Finance, the Oil and Gas Regulatory Authority (OGRA) set the revised prices based on global market trends. As a result, petrol prices have risen from Rs 248.38 to Rs 252.10 per litre, and the cost of HSD is now Rs 258.43 per litre, up from Rs 255.14.
Demand for gasoline has grown over the years, especially in Punjab, where CNG stations now rely on imported gas, which is much more expensive than supplies from domestic sources. This has made CNG uncompetitive in the province, shifting reliance on gasoline.
HSD, widely used in the transportation and agricultural sectors, plays a crucial role in these industries, making price changes particularly inflationary.
In contrast, the price of kerosene oil, which is used primarily in remote areas for cooking and heating, especially in northern Pakistan, fell from Rs 165.60 to Rs 164.98 per litre. The Pakistani Army remains a major user of kerosene oil in these cold regions. Likewise, LDO, which caters to the industrial sector, saw a decline from Rs 152.21 to Rs 151.73 per litre.
The revised rates also include the Inland Freight Equalization Margin (IFEM), set at Rs 7.50 per liter of petrol and Rs 4.15 per liter of HSD. The premium on gasoline imports, which currently stands at $9.80 per barrel, contributed to the rise in prices.
In a previous price review, the government internalized higher oil costs within the IFEM to protect consumers from the full impact of inflation. However, petroleum tax, set at Rs 60 per liter for both petrol and HSD, remains an important element in fuel pricing. This tax helps the government manage current expenditures.
Meanwhile, Ugra announced a slight increase in LPG prices for December, attributing it to slight fluctuations in the exchange rate. While the Saudi Aramco LPG contract price remained unchanged, a 0.05% rise in the average dollar exchange rate resulted in a marginal rise in consumer prices.
For December, the price of an 11.8 kg LPG cylinder rose by Rs 1.32, to Rs 3,000.79, compared to Rs 2,999.47 in November. The product price for the same cylinder is now Rs 2,513.45, up from Rs 2,512.13. On a per kg basis, the increase is Rs 0.11.
These adjustments reflect ongoing efforts to balance international market pressures with local consumer affordability.