Tag: fuel prices

  • Pakistan Railways increases train fares amid record-high fuel prices 

    Pakistan Railways increases train fares amid record-high fuel prices 

    Pakistan Railways has announced a second fare increase this September in response to a significant surge in petrol and diesel prices. 

    According to ARY News, effective tomorrow, September 19th, train fares will see a 5 per cent hike across all categories, encompassing shuttles, passenger trains, express services, and freight. It’s worth noting that this increase excludes shuttle and passenger trains covering distances of 250 kilometres or less. 

    Over the past 1.5 months, the railway ministry has already implemented a cumulative 20 per cent fare increase. The previous increments occurred on August 10th (10 per cent) and September 2nd. 

    This decision by Pakistan Railways closely follows an earlier announcement this month, wherein a 5 per cent fare increase was revealed for all shuttle, passenger, express, and inter-city trains. 

    These adjustments coincide with a recent decision by the caretaker government to raise petroleum product prices by up to Rs14 per litre. This move is seen as contradictory to previous promises of relief to the general populace. 

    Of particular note is the substantial increase in petrol and diesel prices, with petrol rising by Rs26.2 per litre to reach a new price of Rs331.38 per litre and diesel increasing by Rs17.34 per litre, now priced at Rs329.18 per litre. 

    Within the span of just one month, the caretaker government has raised petrol prices by Rs58 per litre and diesel prices by Rs56 per litre, raising concerns among economic experts regarding a potential fresh wave of inflation triggered by these drastic fuel price hikes. 

  • Govt raises petrol price by Rs26.02 per litre, diesel by Rs17

    On Friday night, the interim government implemented a significant adjustment in fuel prices. The cost of petrol rose by Rs26.02 per litre, reaching a new rate of Rs331.38 per litre, while high-speed diesel (HSD) saw an increase of Rs17.34 per litre, settling at Rs329.18 per litre.

    The Ministry of Finance made this announcement via a post on X (formerly known as Twitter) after midnight.

    This decision was driven by the continuous upward trajectory of petroleum prices in the global market. It’s important to note that there were no alterations made to the rates of kerosene or light diesel oil.

    This latest price surge closely follows a substantial hike on September 1, when the interim government elevated fuel prices by up to Rs18 per litre. This increase was preceded by similar adjustments made by the interim government on August 15.

    The rationale behind these price adjustments lies in adherence to existing tax structures and import parity prices. These changes were primarily necessitated by currency fluctuations and a slight uptick in international oil prices.

  • Govt hikes petrol and diesel prices by nearly Rs20 per litre

    Govt hikes petrol and diesel prices by nearly Rs20 per litre

    In a move to fulfill its commitment with the International Monetary Fund (IMF), Pakistan’s Finance Minister Ishaq Dar has announced a substantial increase in petrol and diesel prices. The revision has taken effect immediately today (August 1st), with petrol price rising by Rs19.95 per litre and diesel price climbing by Rs19.90 per litre.

    Here are the new petrol and diesel prices:

    Product Old prices New prices Increase
    Petrol Rs253 Rs272.95 Rs19.95
    Diesel Rs253.50 Rs273.40 Rs19.90

    Minister Dar stated that the price hike was necessary to comply with the IMF’s requirement to impose a petroleum development levy (PDL) on the rates. He mentioned that despite attempts to mitigate the impact on inflation-weary citizens, the government had little room to maneuver due to the binding agreement with the IMF.

    The announcement was originally scheduled for July 31, but the government delayed the decision as officials sought ways to minimise the impact on the general public. The Finance Minister, making this announcement for the last time before his government’s term ends on August 12, emphasised that the decision was taken in the “national interest.”

    Dar clarified that if it were not for the IMF agreement, the government would have attempted to reduce the PDL to provide relief to the masses. He referred to the measures taken by the previous government that decreased petrol prices but resulted in a breach of commitments with the IMF.

    Explaining the reasons behind the price hike, the finance minister highlighted the surge in international market prices of high-speed diesel, which necessitated adjustments in local rates. He stressed that it was crucial to pass on the minimum amount to the consumers, considering the nation’s interests.

    The sudden increase in fuel prices is likely to have significant implications on the overall economy, including its impact on inflation rates and the cost of living for ordinary citizens. With the government’s term ending soon, the incoming administration will face the challenge of managing economic stability and addressing public concerns over rising fuel costs.

  • Here are the revised diesel and petrol prices effective July 16, 2023

    Here are the revised diesel and petrol prices effective July 16, 2023

    Finance Minister Ishaq Dar announced on Saturday that the prices of petrol and diesel will be reduced in the upcoming fortnightly review.

    During a televised address, the minister said that petrol prices will be reduced by Rs9 per litre, while diesel prices will see a decrease of Rs7 per litre. These adjustments were made due to changes in the international market over the past 15 days, with one petroleum product’s price increasing and the other decreasing.

    Following these revisions, the new price for petrol will be Rs253 per litre, and high-speed diesel (HSD) will be priced at Rs253.50 per litre. Minister Dar clarified that the petroleum development levy (PDL), which was previously raised to Rs60 per litre in response to the International Monetary Fund’s (IMF) request, will remain unchanged.

    The new prices will take effect on July 16, Sunday. Minister Dar also highlighted that the local currency has strengthened against the US dollar in the last 15 days, following Pakistan’s successful negotiation of a $3 billion Stand-By Arrangement (SBA) with the IMF.

    Here are the new diesel and petrol prices effective from tomorrow (July 16, 2023):

    Petroleum Product Previous Price Reduction Revised Price
    Petrol Rs263 per litre Rs9 per litre Rs254 per litre
    Diesel Rs260.50 per litre Rs7 per litre Rs253.50 per litre
  • Govt keeps petrol price unchanged, implements Rs7.50 hike in diesel rate

    Govt keeps petrol price unchanged, implements Rs7.50 hike in diesel rate

    The Finance Minister, Ishaq Dar, announced that the price of petrol will remain unchanged while the price of diesel will see an increase of Rs7.50 per litre for the next fortnight. 

    During a late-night press conference, Minister Dar clarified that there would be no adjustments made to the price of petrol, but the price of diesel would experience a rise of Rs7.50 per litre. The revised price for diesel will take effect from 12:00 am on July 1.

    As per the government’s announcement, the existing price of petrol, as of June 30, 2023, will be maintained at Rs262 per litre. There will be no change in the petrol price. 

    On the other hand, the existing price of diesel, also as of June 30, 2023, stands at Rs253 per litre. However, starting from July 1, 2023, the new price for diesel will be Rs260.50 per litre, reflecting an increase of Rs7.50 per litre.

    It is worth noting that earlier reports had indicated a potential increase of Rs5 in the Petroleum Development Levy (PDL) for both petrol and diesel, scheduled to be implemented on July 1. 

    The government had been considering raising the petroleum levy from Rs50 to Rs55 per litre for both fuels. The adjustment in the PDL is set to commence at the start of the next fiscal year.

    To enable this change, the government has sought the authority to amend the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961), specifically in the Fifth Schedule, column (1), through the Finance Act 2023-24. This amendment grants the government the power to adjust the petroleum levy as required.

  • Massive reduction in petrol price expected as Pakistan aims for one-third crude oil import from Russia

    Massive reduction in petrol price expected as Pakistan aims for one-third crude oil import from Russia

    Minister of State for Petroleum, Musadik Malik, has announced that the prices of petroleum products will witness a decrease once a continuous supply of oil from Russia is ensured.

    Speaking to a private news channel, Malik highlighted the substantial difference in prices that will benefit the masses once Pakistan starts fulfilling one-third of its domestic oil needs through imported Russian oil. He stated, “Our target is to obtain one-third of crude oil from Russia at a discounted rate. When we achieve this objective, petroleum products will be available at a cheaper price.”

    In response to a question about the expected decrease in fuel prices, Malik said, “I am unable to divulge the precise pricing details at this moment. However, it will lead to a significant difference.”

    While the state minister refrained from disclosing the current price, he emphasised that a substantial reduction in price would occur. He also mentioned that the first oil cargo has already arrived in Karachi, and the government is focused on maintaining a steady supply of Russian oil.

    The current deal involves 100,000 metric tonnes of oil, with the second consignment scheduled to arrive at the port next week.

    When asked about the possible effects of buying Russian oil and any potential issues at the global level, Malik expressed confidence that adhering to agreements and maintaining transparency would prevent any complications. He underscored the importance of responsible international engagement.

    Previously, Prime Minister Shehbaz Sharif expressed his fulfillment of another promise made to the nation, stating that the arrival of the first-ever Russian oil cargo marks the beginning of a new relationship between Pakistan and the Russian Federation. He described the day as transformative and emphasised the country’s commitment to achieving prosperity, economic growth, and energy security.

    Following its docking at the port, the authorities have commenced the process of transferring the Russian crude from the oil tanker to the Pakistan Refinery Limited for further processing and extraction of various final products. The transportation of crude oil to the facility is expected to be completed within the next 24 to 36 hours.

    It is worth noting that this is the first time Russian crude oil is being treated in Pakistan. The determination of the actual price of petroleum products in Pakistan will be possible only after the completion of the processing of this imported oil.

  • Petrol price slashed by Rs8 to Rs262 per litre for next fortnight

    Petrol price slashed by Rs8 to Rs262 per litre for next fortnight

    In a televised address on Wednesday, Finance Minister Ishaq Dar announced a significant reduction in the prices of petroleum products by the federal government.

    Effective from 12 am tonight, the price of petrol will be lowered by Rs8 per litre, bringing it down to Rs262 per litre. Similarly, the price of diesel will be reduced by Rs5 per litre, making it Rs253 per litre.

    Minister Dar said that these revised prices would remain unchanged for the next fortnight, providing stability and predictability for consumers. He further stated that this reduction in prices is part of a cumulative effort, as the government has already decreased the prices of petrol and diesel by Rs20 and Rs35 per litre respectively throughout the month of May.

  • Russian oil imports expected to reduce fuel prices slowly, says Musadik Malik

    Russian oil imports expected to reduce fuel prices slowly, says Musadik Malik

    At the Pakistan Energy Conference 2023, Minister of State for Petroleum, Musadik Malik, reassured the nation that the arrival of cheap oil from Russia would eventually lead to a decline in fuel prices. However, he cautioned that an immediate decrease should not be expected until a continuous supply of oil from Moscow is established.

    Minister Malik said that the import of Russian oil was not merely a promise or rhetoric. He confirmed that ships carrying the much-anticipated oil had already reached Oman and would commence supply to Pakistan within a week. While acknowledging that a single shipment would not significantly impact fuel costs, Malik expressed confidence that once a persistent supply was established, the price of fuel would gradually decrease.

    The government’s ambitious objective is to fulfill one-third of Pakistan’s crude oil requirements with affordable oil sources, including imports from Russia. The aim is to address the chronic energy shortages that Pakistan, the world’s fifth most populous country, has been grappling with. Currently, Pakistan imports 84 per cent of its petroleum products, primarily from Gulf Arab allies Saudi Arabia and the United Arab Emirates.

    The import of cheap Russian oil represents one of Pakistan’s strategies to alleviate its energy crisis, as global efforts are underway to restrict Russia’s oil exports due to its invasion of Ukraine. During a visit to the United States earlier this month, Minister Malik confirmed that Pakistan had placed its first order for Russian oil, which is expected to arrive within a month. Upon evaluating the impact of this initial shipment, Pakistan will decide on the extent of future imports.

    When asked about the possibility of pursuing more Russian imports, Malik responded that Pakistan would prioritise cheaper energy sources to meet its energy requirements. The minister further emphasised that the government’s objective was to ensure a sustainable and affordable supply of low-cost energy, highlighting accessibility, sustainability, and affordability as the key pillars of this vision.

    In addition to the import of Russian oil, Malik mentioned the Iran-Pakistan Gas Pipeline project as another avenue to address the country’s energy needs. The government has conveyed to Iran its intention to access energy through the pipeline while remaining responsible and avoiding potential sanctions. Talks are underway with both sanctioning countries and Iran to find a creative solution to this matter.

    With Pakistan eagerly awaiting the arrival of cheap Russian oil, the government remains committed to securing a sustainable and affordable energy supply to meet the needs of its citizens. The gradual decline in fuel prices is expected to provide much-needed relief to the nation, addressing its chronic energy shortages and boosting economic growth in the process.

  • Govt expected to reduce petrol price by Rs10 per litre in a pre-budget relief move

    Ahead of the much-anticipated federal budget for 2023-24, set to be announced on June 9, the government is planning to alleviate the burden of inflation by reducing the prices of petroleum products, according to industry officials.

    Starting from June 1, it is expected that the price of petrol will decrease by Rs10 per litre due to a decline in the ex-refinery price. Industry insiders have revealed that the ex-refinery price of petrol is projected to decrease by Rs10-12 over the next two weeks. However, due to exchange rate adjustments, the government will likely pass on relief of up to Rs10 per litre to consumers.

    Furthermore, industry officials have indicated that the ex-refinery price of diesel is showing a decline of Rs4-5 per litre in the next review. The government may incorporate this decrease during the upcoming fortnightly review, offering relief to diesel consumers.

    According to The News, in the previous price review, the government implemented a substantial reduction of Rs30 in the price of diesel. This resulted in a decrease from Rs288 to Rs258 per litre. Similarly, the price of petrol was slashed by Rs12, dropping from Rs282 to Rs270 per litre.

    These measures are aimed at mitigating the impact of rising prices on the general public and easing the financial burden faced by individuals as the government prepares to present the federal budget for the upcoming fiscal year.

  • Petrol price expected to decrease by Rs10 per litre for the next fortnight

    Petrol price expected to decrease by Rs10 per litre for the next fortnight

    The prices of petroleum products are expected to decrease starting from May 16, as the coalition government intends to provide some relief to the distressed public amidst the severe economic crisis and record inflation.

    According to reports in local media, petrol price will see a reduction of Rs10 per litre for the rest of May.

    It has been reported that the Oil and Gas Regulatory Authority (OGRA) has recommended a decrease in the prices of petroleum products. Based on these reports, the price of petrol may be reduced by Rs10 per litre, while the price of diesel is anticipated to decrease by Rs8 per litre.

    OGRA has submitted a summary to the government, and Finance Minister Ishaq Dar and other officials will seek the input of Prime Minister Shehbaz Sharif on the recommendations. The final decision will be announced today.

    The revised prices of petroleum products for the upcoming two weeks will be implemented after midnight on May 15.

    Earlier this month, the federal government announced a reduction of Rs5 per litre in the price of diesel, while the price of petrol remained unchanged. Presently, petrol is being sold at Rs282, HSD at Rs288, kerosene oil at Rs176.07, and light diesel oil at Rs164.68 per litre.