ISLAMABAD: A small hike of Re0.81 per litre in petrol prices and a moderate reduction of Rs3.94 per litre in diesel prices have been proposed for the next fortnight starting December 16, 2024.
The adjustments are based on the first 12 days of the current fortnight, reflecting international market volatility due to the recent regime change in Syria.
In case the situation in Syria settles down soon, the POL price may come down more. Currently, the crude oil and POL products in the international market are available in abundance, but demand is lower.
As per the 12 days working, the price of petrol may settle from December 16 at Rs252.92 per litre after an increase in its price by Re0.81 per litre. Diesel may come down by Rs3.94 per litre to Rs254.53 from the existing price of Rs258.43 per litre.
In the previous fortnightly review, the federal government increased the price of petrol by Rs3.72 per litre. Petrol price was increased from Rs248.38 to Rs252.10 per litre. The price of high-speed diesel (HSD) was also increased from Rs255.14 per litre to Rs258.43, a rise of Rs3.29.
Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting.
On the other hand, a significant portion of the transport sector relies on high-speed diesel. Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.
