Petrol and diesel prices in Pakistan are set to rise starting July 1 following four consecutive price reductions. Reports indicate that petrol prices could increase by Rs7 per litre and HSD by Rs8 per litre due to higher international market rates.
Recent data shows a $4.4 per barrel rise for petrol and a $5.5 per barrel increase for HSD over the past two weeks, prompting potential domestic price hikes. These increases could be more substantial if the government decides to raise the Petroleum Development Levy (PDL) from the current Rs60 per litre.
Read more: Govt Reduces Petrol Price Significantly Before Eid
Since May 1, petrol prices have dropped by about Rs35 per litre, declining from approximately Rs294 at the end of April to around Rs259. Similarly, HSD prices have fallen by approximately Rs22 per litre, decreasing from over Rs290 in mid-April to Rs268.
The Finance Bill 2024 has increased the PDL ceiling to Rs80 per litre to achieve a revenue target of Rs1.28 trillion, up from the previous fiscal year’s target of Rs960 billion. Finance Minister Muhammad Aurangzeb noted that the PDL could be adjusted further based on market trends.
Petroleum and electricity prices significantly impact inflation in Pakistan, affecting the middle and lower-middle classes, as well as the prices of essential goods.
