The federal government increased the petrol and diesel prices on the eve of New Year, dashing people’s hopes for a decrease in fuel prices.

As part of the fortnightly revision, the petrol price has been increased by 56 paisa per litre to Rs258.66 and high-speed diesel by Rs2.96/litre to Rs258.34.

The new prices will take effect at midnight.

Oil prices were on track to end 2024 with a second consecutive year of losses on Tuesday, but were steady on the day as data showing an expansion in Chinese manufacturing was balanced by Nigeria targeting higher output next year, Reuters reported.

Brent crude futures fell by 7 cents, or 0.09%, to $73.92 a barrel as of 1306 GMT. US West Texas Intermediate crude lost 4 cents, or 0.06%, to $70.95 a barrel.

At those levels, Brent was down around 4% from its final 2023 close price of $77.04, while WTI was down around 1% from where it settled on December 29 last year at $71.65.

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Earlier this month, the government kept the petrol and diesel prices unchanged. Pakistan’s fuel rates are determined by 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 to collect Rs1.28 trillion. The target is nearly Rs150 billion higher than the previous year’s collection of Rs1.019 trillion and exceeds the budget target of Rs869 billion.