The Pakistan federal government revealed that it would increase the fuel price from November 1, 2024. Now, petrol has increased Rs1.35 to reach the new price of Rs248.38, while high-speed diesel witnessed an even higher increase at Rs3.85 per liter and is now at Rs255.14.
The Finance Division has also decreased the prices of other petroleum products, notified recently. LDO prices have been reduced by Rs2.61 and the new price will be Rs147.51 per litre. The kerosene oil price has been brought down to Rs161.54 per liter from Rs163.02.
This time, it is tweaked at a time when taxes on petroleum products have soared and hikes have been coming as compensation for the spiking of each. In the previous revision, the petrol was stabilized with a hike in the price of HSD to the tune of Rs5 per liter.
Higher fuel prices would be passed on to transport and other consuming industries such as diesel and petrol, which may influence the overall inflation rate. The pushed-up diesel costs can be transferred into higher goods and services throughout the country, which will weigh on the consumer.
This reflects persistent difficulties in managing fuel prices as global market movements and local taxation drive regulatory adjustments.
This assumes that the revenue imperative has to be weighed against inflationary repercussions on consumers. Says an economic analyst: Incremental increases for revenue reasons get to a point where something has to be done about policies that deal with root causes rather than constant band-aid adjustments of fuel prices.
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