Government Raises Fuel Prices Due to Middle East Tensions
The federal government increased petrol and diesel prices in response to the Iran-Israel conflict, impacting consumers in Pakistan. The hike is expected to raise inflation and affect transportation costs across the country.
The federal government increased the prices of petroleum products for the next fortnight due to the impact of the Iran-Israel war. Petrol price rose by Rs8.36 per litre and high-speed diesel by Rs10.39 per litre. The prices were raised based on Ogra's recommendation.
Petrol is now priced at Rs266.79 per litre, up from Rs258.43 per litre, while HSD is now at Rs272.98 per litre, up from Rs262.59 per litre. Pakistan imports 85% of its petroleum products mainly from the Middle East.
Israeli airstrikes on Iranian sites led to a spike in crude oil prices, reaching $8287 per barrel. The recent hike in petrol and HSD prices will impact inflation due to their use in transport and agriculture sectors.
The government can offset the price increase by adjusting the petroleum levy. Consumers are paying over Rs77 per litre as petroleum levy. The government aims to generate Rs1.4 trillion revenue from petroleum levy, the highest in the country's history.
According to the source: The Express Tribune.
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