The federal government on Sunday increased the price of petrol by Rs9.66 per litre, effective from April 1, 2024 — a decision which could have a serious inflationary impact on the lives of ordinary citizens.
According to a notification issued by the finance ministry, the price of petrol was increased as per the recommendation of the Oil & Gas Regulatory Authority (Ogra).
Petrol is predominantly used in motorbikes and cars as an alternative to compressed natural gas (CNG), especially in the Punjab province where indigenous gas is not available at CNG retail outlets.
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However, the government has also decided to decrease the tariff of high-speed diesel (HSD) by Rs3.32. After the hike, the price of petrol reached Rs289.41 while HSD is available at Rs282.24.
HSD is primarily used in the agriculture and transport sectors, and this price reduction may help alleviate inflation to some extent.
The recent increase in petrol price is attributed to a rise in the premium from $12.15/barrel to $13.507/barrel, marking a $1.45/barrel increment.
The new prices of petroleum products will be implemented at 12am, which will remain applicable for the next 15 days.
