The government increased on Wednesday the price of petrol by Rs2.07 per litre, taking it to to Rs235.98 for the next fortnight. It also announced an increase in the prices of high-speed diesel by Rs2.99 per litre, taking it to Rs247.43, light diesel oil by Rs10.92 per litre to Rs210.32, and kerosene oil by Rs9.79 per litre to Rs201.54.

The prices came into effect from September 1.

First half of Sept: Cut in oil prices expected

The decision to further increase the petrol prices is in contrast to market expectations. The market expected up to a Rs20 per litre reduction in the prices of major petroleum products (petrol and high-speed diesel) in the first half of September 2022.

The expectations were driven by the reduction of the average exchange rate which come down from Rs227 in the first half of August to Rs217 in the last 15 days' purchase of Pakistan State Oil (PSO). Similarly, the premium which was paid at the rate of $17 and $8.5 per barrel on petrol and HSD, respectively, in the first half of August had also come down.