Pakistan is expected to witness another increase in fuel prices as the government prepares for its latest fortnightly fuel price review. The expected rise comes after global crude oil prices climbed due to growing tensions between Iran and the United States.
According to reports, Petrol prices may increase by around Rs10 per litre, while high-speed diesel could become more expensive by as much as Rs40 per litre. If approved, the new prices will come into effect from 18 July.
At present, Petrol is priced at Rs310.71 per litre, while high-speed diesel costs Rs323.30 per litre. Following the expected revision, petrol could reach nearly Rs320 per litre, while diesel may cross Rs350 per litre.
The final decision on the price adjustment will be announced by the Finance Division after reviewing international oil prices, exchange rates, and other relevant factors.
The expected increase is mainly linked to rising global crude oil prices. Oil markets have remained volatile due to the latest geopolitical developments in the Middle East. Concerns over supply disruptions have pushed international oil prices higher, affecting countries that rely on imported petroleum products.
To reduce the financial impact on consumers, the government is reportedly considering lowering the petroleum levy. However, no official decision has been announced so far.
Meanwhile, authorities have launched a nationwide campaign against fuel hoarding. Officials fear that some traders and dealers may store petroleum products in anticipation of higher prices, creating artificial shortages in the market.
The National Committee on Monitoring and Coordination has directed the Oil and Gas Regulatory Authority (OGRA) to take immediate action against hoarders and anyone involved in market manipulation. The committee stressed that fuel supplies should remain uninterrupted across the country despite the expected price revision.
The government has also revised export duties on petroleum products. These changes became effective from 16 July.
Under the updated rates, the export duty on diesel has increased from Rs8.5 to Rs15.5 per litre, reflecting a rise of Rs7 per litre. The export duty on Aviation Turbine Fuel (ATF) has also increased from Rs7.5 to Rs14.5 per litre.
In contrast, the export duty on Petrol has been reduced from Rs4 to Rs2.5 per litre. The move is aimed at providing some relief to exporters while maintaining adequate fuel supplies in the domestic market.
Pakistan reviews petroleum prices every two weeks. During each review, the government considers international crude oil prices, refining costs, taxes, and other market factors before setting domestic fuel prices.
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The pricing mechanism is designed to ensure sufficient fuel availability while preventing excessive profits from petroleum exports. With global oil prices remaining uncertain, consumers and businesses will closely watch the government’s final announcement on 18 July.
