Petrol Prices have been increased for the month of June, effective from midnight June 12, 2018. Petrol, High-Speed Diesel (HSD), Superior Kerosene Oil (SKO), and Light Diesel Oil (LDO) prices have been increased by Rs 4.26, Rs 6.55, Rs 4.46 and Rs 6.14 per litre respectively. The new prices of petrol, HSD, SKO, and LDO after the price hike will be Rs 91.96 per litre, Rs 105.31per litre, Rs 84.34 per litre, and Rs 74.99 per litre.
OGRA proposed that petrol, HSD, SKO, and LDO prices should be increased by Rs 8.37, Rs 12.50, Rs 8.22 and Rs 11.65 for June month respectively. The PML-N government, however, decided not to increase prices and left the decision in the hands of the caretaker government.
Finance Division said in a statement that due to the increase in global fuel prices the caretaker government has decided to increase prices by 50% of the proposed prices and leave the other 50% as a breather for consumers in the month of Ramadan. The prices will be effective till June 30th, 2018. There is a chance that by the end of June the government will again increase petrol prices as we have seen in almost all previous months of 2018.
The two main reasons for the rise in petrol prices are the global increase in oil prices and the devaluation of rupee against the dollar. Just yesterday on June 11th, the Pakistani Rupee hit a record low at Rs 122 per dollar in early trade at the interbank. After the loss, the dollar price went a bit down to Rs 120. The foremost effect of rupee depreciation is the rise in fuel prices which continue to happen with each passing month. Other effects include an increase in car prices, unstable economy, inflation and a negative impact on trade and commerce.