Monday, July 15, 2024

Petrol Prices Expected to Rise in Pakistan From 1st July

The Pakistani government is expected to increase petrol prices by around Rs7 per litre for the first half of July 2024, influenced by rising international oil prices. This anticipated hike follows four consecutive price reductions, which collectively provided a relief of Rs35 per litre.

This will be the first increase in petrol prices after these recent reductions. In addition to the petrol price hike, the government is also planning to raise the price of high-speed diesel (HSD) by approximately Rs10.50 per litre due to similar international price pressures.

As part of the fiscal year 2024-2025 budget, the federal government has decided to raise the maximum petroleum levy by Rs20, bringing it to Rs80 per unit for both high-speed diesel oil (HSDO) and motor gasoline. This decision reflects the government’s strategy to adjust the petroleum levy in line with global price movements.

It is important to note that the final prices will be determined based on the latest global market trends and the exchange rate, as there is still a week remaining before the next pricing update.

The new prices will be officially announced at midnight on June 30, 2024, and will be effective for the subsequent 15 days.

For context, during the last pricing update, the government had reduced petrol and HSD prices for the third consecutive time. The petrol price was cut by Rs10.2, bringing it down to Rs258.16 per litre, and the HSD price was reduced by Rs2.33, setting it at Rs267.89 per litre.

This expected increase in fuel prices underscores the government’s response to volatile international market conditions and its need to balance fiscal responsibilities with the pricing of petroleum products.

The forthcoming hike aims to align domestic fuel prices with international rates, reflecting the ongoing challenges of managing the economic impacts of global oil price fluctuations on the national economy.

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