ISLAMABAD: Pakistan’s federal government on Tuesday hiked the prices of petroleum products effective January 1, 2025, delivering a New Year blow to consumers already burdened by inflation.
According to a notification issued by the Ministry of Finance, the price of petrol has been increased by 56 paisas per litre, while high-speed diesel (HSD) has seen a hike of Rs2.96 per litre for the next fortnight.
The new prices, effective from midnight, will remain in place until January 15, 2025.
Under the revised rates, petrol will now cost Rs252.66 per litre, while HSD will be priced at Rs258.34 per litre, the notification confirmed.
The announcement dashed public expectations for a reduction in fuel prices as part of the fortnightly review.
The oil market globally showed a mixed trend on Tuesday. Brent crude futures settled at $73.92 per barrel, reflecting a 4% drop from the close of 2023, while US West Texas Intermediate (WTI) crude slipped to $70.95 per barrel, down by 1% compared to the same period last year.
Earlier reports speculated a potential Rs3.62 per litre increase in HSD and an 11 paisa per litre hike in petrol prices.
Read also: Pakistan Begins Construction of its Biggest Nuclear Power Reactor
Energy analysts attributed the price hikes to several factors, including a premium of $8.69 per barrel on imported oil, adjustments in the petroleum levy, general sales tax, and the ongoing volatility in exchange rates.
In the previous fortnightly review, the government had kept the price of petrol unchanged and reduced High-Speed Diesel (HSD) by Rs3.05 per litre for the next fortnight.
