There has been an increase in the price of petroleum after the global hike in oil prices. This has impacted the government’s efforts to maintain the price of petroleum products in the month of February. There was an outcry from the public along with opposition political parties due to the effect of the global oil economy. However, the government is left with no choice but to ensure an increase in the prices because otherwise, the local industry would face a significant loss in the face of an already ailing economy. The price of petrol was increased by 2.76 percent and that of high-speed diesel (HSD) by 4.45 percent. The price of kerosene oil was increased by 4.85 percent and that of light diesel oil (LDO) by 3.33 percent.

Petroleum and high-speed diesel (HSD) are two of the most consumed products in the country. This is despite the increase in their prices, these two products remain the most demand products in the country. Sales of HSD are touching 800,000 tonnes per month and of petrol around 700,000 tonnes. The increase in price is going to agitate the local consumer because of the added pressure by other taxation along with increases in prices, however, the government is bound by international developments to make changes domestically in order to protect the domestic market in comparison with the global markets.

The businesses in the country are definitely going to be affected by the constant flux in prices of various input products used in their industries. However, all these changes are made in collaboration with the Oil and Gas Regulatory Authority (OGRA). The most the government can do to facilitate the businesses and the common consumer is to educate them about the shifts in the global economy and how that is going to shift prices here.