The Price of Petrol Is Likely To Increase By Rs 7/L
After a series of consecutive decreases, petrol prices in Pakistan are set to rise again. Reports from the media indicate that the current government plans to increase fuel prices by Rs. 7 on 30th June, with petrol expected to climb to Rs. 265.16 per liter from its previous rate of Rs. 258.16. Similarly, high-speed diesel (HSD) is anticipated to jump by Rs. 10.50 per liter to reach Rs. 277.89, up from Rs. 267.89.
This increase is driven by the recent surge in international oil prices, influencing the local market in Pakistan. The government’s decision to raise the petroleum levy from Rs. 60 to Rs. 80 per liter for both petrol and diesel is also a contributing factor. This adjustment was proposed by Finance Minister Muhammad Aurangzeb in the fiscal year 2024-25 budget. There were earlier discussions about potentially imposing an 18% GST on petroleum products, currently taxed at 0%.
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The previous levy of Rs. 60 per liter was initially introduced to comply with IMF requirements, but adjustments have become necessary due to the ongoing challenges in revenue generation and the phasing out of consumption subsidies.
With these changes, petrol prices could potentially soar to between Rs. 290 and Rs. 300 per liter, marking a significant increase and putting additional strain on the daily expenses of the population already grappling with high inflation.
The implications of these price hikes extend beyond the fuel pump. Transportation costs for essential goods and services are expected to rise, impacting businesses that rely on fuel and potentially affecting employment and overall economic activity.
