Mumbai, February 16: The federal government of Pakistan has announced a significant increase in the prices of petroleum products, effective Monday, February 16. Following a late-night notification from the Petroleum Division, the price of petrol has been raised by PKR 5 per litre, while high-speed diesel (HSD) has seen a steeper surge of PKR 7.32 per litre. The revision, which comes after a period of relative stability for petrol, is attributed to rising international oil prices and recommendations from the Oil and Gas Regulatory Authority (OGRA).

New Fuel Rates for February 16-28

The updated prices will remain in effect for the next 15 days, impacting millions of commuters and the broader transport sector across the country. Petrol will now sell at PKR 258.17 per litre, up from PKR 253.17, while diesel has been hiked to PKR 275.70 per litre, up from PKR 268.38. Pakistan Government Hikes Petrol Prices by PKR 5 per litre, Diesel Rates Also Increased by PKR 7.32.

Current and Previous Rates of Petrol and Diesel in Pakistan

Comparison of petrol and diesel prices before and after hike (Photo Credits: fuelpricestoday.com)

Impact on Inflation and Daily Life

The hike in high-speed diesel is of particular concern to economic analysts, as HSD is the primary fuel for heavy transport, freight trucks, and agricultural machinery. An increase in diesel rates typically leads to a "trickle-down" effect, raising the costs of essential food items and public transport fares. Conversely, the PKR 5 hike in petrol directly affects middle and lower-middle-class households who rely on motorcycles and small vehicles for daily travel. This follows a February 1 review where the government had provided temporary relief by slashing diesel prices by PKR 14 while keeping petrol rates unchanged.

Taxation and Global Context

The price adjustment is influenced by the ongoing volatility in the global energy market and the government's fiscal commitments. Although General Sales Tax (GST) remains at zero, the government continues to collect significant revenue through the Petroleum Development Levy (PDL).

Current Levies Include:

Petroleum Levy: PKR 87 per litre on petrol and PKR 79 per litre on diesel.

Climate Support Levy: A newly implemented PKR 2.50 per litre included within the PDL.

Customs Duty: Approximately PKR 17-18 per litre on both products.

The government aims to recover approximately PKR 1.47 trillion through these levies in the current fiscal year to meet budgetary targets. Senorita Viral Video: Who is the Pakistani TikToker and Is the Link Real?

Outlook for Next Month

With the next review scheduled for March 1, consumers remain wary of further increases. Market sources suggest that if international crude prices continue to climb due to geopolitical supply constraints, another upward revision may be necessary to maintain the government's revenue stream and satisfy international lending requirements.

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