The federal government has increased the price of petrol by 3 rupees 72 paisa per liter for the next fortnight starting from December 1.
According to the latest notification of the Finance Division, the price of petrol has been increased from Rs 248.38 to Rs 252.10 per litre.
The federal government also increased the price of High Speed Diesel (HSD) by Rs 3.29 from Rs 255.14 per liter to Rs 258.43 per litre.
The notification said that the Oil and Gas Regulatory Authority (OGRA) has fixed consumer prices of petroleum products based on price differentials in the international market.
In the last fortnightly review, the federal government had maintained the prices of petrol and diesel based on price trends in the international market.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers. High fuel prices significantly affect the budgets of members of the middle and lower middle class, who mainly use petrol for travel. On the other hand, a large part of the transport sector relies on high-speed diesel.
Its price is considered inflationary as it is primarily used in heavy goods vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tubewells, and threshers.
High consumption of diesel leads to increase in prices of vegetables and other food items in particular.