ISLAMABAD: Petrol and diesel prices in Pakistan are expected to increase in the upcoming fortnight owing to a rise in global oil prices, with high-speed diesel (HSD) facing a steeper hike.
Preliminary estimates suggest that the ex-depot price of petrol could rise by around Re1 per litre, while diesel may see a jump of nearly Rs5 per litre, according to people familiar with the matter. The final rate will be announced on June 15, following a review of import costs and Pakistani rupee versus US dollar movements.
Petrol in Pakistan is currently selling at Rs252.63 per litre, while diesel is priced slightly higher at Rs254.64. The expected increase in fuel prices comes as international oil benchmarks rise, while the government’s existing tax and levy structure remains unchanged.
Petrol is mainly used in motorcycles, cars and rickshaws, and any price hike directly affects monthly budgets of lower and middle-income households. Diesel powers trucks, buses, trains, and agricultural machinery, so changes in its price have a broader impact on inflation by increasing transport and food prices across the economy.
The government is currently collecting about Rs94 per litre in total taxes and duties on both fuels. This includes a petroleum development levy (PDL) of Rs78.02 on petrol and Rs77.01 on diesel. General sales tax (GST) is not being applied on petroleum products at this time.
In addition, customs duties of roughly Rs16 per litre are applied to both fuels, whether imported or refined locally. Oil marketing companies and their dealers also receive about Rs17 per litre in distribution and retail margins.
