Pakistan set to raise petrol and diesel prices amid growing inflation concerns

Inflation concerns continue to mount as the Pakistani government, led by Prime Minister Shehbaz Sharif, is expected to raise petrol and diesel prices starting February 1, 2025, according to a report by Samaa TV.

The surge in global crude oil prices has heightened worries about further price hikes for petroleum products in the country. Sources cited by Samaa TV suggest that petrol prices could rise by Rs 3 per litre, while high-speed diesel (HSD) may see a larger increase of Rs 6 per litre in the upcoming fortnightly review. The Oil and Gas Regulatory Authority (OGRA) is expected to submit a summary to the relevant ministry, recommending price adjustments based on global oil price trends and fluctuations in the exchange rate. A final decision on the price hikes will be made after consultations between Finance Minister Muhammad Aurangzeb and Prime Minister Shehbaz Sharif. The official announcement is expected on January 31, 2025.

In the previous review, the government had raised petrol prices by Rs 3.47 per litre, bringing the new rate to Rs 256.13 per litre. The price of HSD had been increased by Rs 2.61 per litre, bringing it to Rs 260.95 per litre.

Inflation in Pakistan has become a major challenge for the average citizen, with rising prices of essential goods, including petrol, diesel, and other basic necessities. As petrol and diesel prices climb, the cost of transportation also increases, leading to higher prices for goods and services across the country. This creates a ripple effect, affecting not only fuel-dependent industries but also everyday items like food, medicine, and utilities.

With inflation at alarming levels, many citizens are struggling to keep up with the rising cost of living. The impact is especially felt by lower-income groups, who find it increasingly difficult to afford even the most basic essentials. Structural issues such as poor governance, inefficient taxation systems, and reliance on foreign loans have compounded the problem. The government’s inability to implement long-term solutions, coupled with external factors like global commodity price fluctuations, has deepened the financial distress experienced by the population.