Govt announces increase in fuel prices on New Year’s eve

The federal government has raised the prices of petrol and diesel on the eve of the New Year, disappointing the public who had hoped for a reduction in fuel costs.

As part of the bi-weekly revision, the price of petrol has increased by 56 paisa per litre to Rs258.66, while high-speed diesel has risen by Rs2.96 per litre to Rs258.34. These new prices will come into effect at midnight.

Despite expectations that oil prices would end 2024 with consecutive losses, global oil prices remained steady on the final day of the year.

Earlier this month, the government had opted to keep fuel prices unchanged. Pakistan’s fuel prices are determined based on a pricing formula approved by the government.

In the fiscal year budget, the government increased the maximum petroleum levy from Rs60 to Rs70 per litre, aiming to collect Rs1.28 trillion.

This target is nearly Rs150 billion higher than the previous year’s collection of Rs1.019 trillion and exceeds the budget target of Rs869 billion.