Pakistan’s federal government announced a significant increase in petrol and diesel prices on Tuesday, while simultaneously reducing the cost of domestic LPG cylinders for October, sparking concern among citizens already facing economic pressures.
Petrol and diesel prices rise
According to a notification issued by the Ministry of Finance, petrol prices have been increased by Rs 4.07 per litre, taking the new rate to Rs 268.68 per litre. High-speed diesel (HSD) rates rose by Rs 4.04 per litre, bringing the price to Rs 276.81 per litre. The revised rates came into immediate effect.
Earlier this month, high-speed diesel prices were raised by Rs 2.78 per litre, setting the rate at Rs 272.77 per litre. Reports also suggest that the prices of HSD, kerosene, and light diesel could see further increases of Rs 4.79, Rs 3.06, and Rs 3.68 per litre, respectively, in the near future.
LPG prices reduced
In a contrasting move, Pakistan’s Oil and Gas Regulatory Authority (OGRA) announced a reduction in Liquefied Petroleum Gas (LPG) prices for domestic use. The price of a domestic LPG cylinder has been reduced by Rs 79.14, lowering the cost from Rs 2,527 to Rs 2,448. Meanwhile, the per-kilogram LPG price fell by Rs 6.71, from Rs 214.19 to Rs 207.48 per kg.
Government procedure for price approval
The Ministry of Petroleum, in consultation with the Ministry of Finance, has prepared a pricing proposal. Once finalised, the summary is forwarded to Prime Minister Shehbaz Sharif for approval. Upon endorsement, the revised rates are announced officially and brought into effect. The latest hikes are part of a series of adjustments made in response to fluctuations in international fuel markets and domestic economic considerations.
Public reaction
The fuel price hike has reignited public frustration over rising living costs. Many citizens questioned the rationale behind the increase, especially given declining global crude oil rates.
A resident, Imran, expressed his discontent, saying, “I don’t understand one thing. Petrol prices are going down in international markets. And when prices go down internationally, our prices go up. Now in one month, petrol prices have increased twice. Where should the poor people go?”
He further criticised the government’s handling of utilities, stating, “They are increasing the prices of K-Electric, gas, and petrol. The government is not looking at the poor people. Petrol prices should go down; in other countries, when international prices fall, domestic prices also reduce.”
Economic context
The hike comes amid widespread economic distress in Pakistan, with inflation eroding household incomes. Fuel price volatility directly affects transportation, agricultural costs, and overall commodity prices, intensifying public dissatisfaction. While LPG reductions offer partial relief for domestic cooking fuel, the sharp rise in petrol and diesel continues to strain budgets across income groups.
Conclusion
Pakistan’s dual move of hiking petrol and diesel while reducing LPG underscores the delicate balancing act faced by the government amid fiscal pressures and public discontent. Analysts note that sustained price volatility, if not managed carefully, could fuel further unrest and impact economic stability.