ISLAMABAD: Petrol and high-speed diesel (HSD) prices are likely to increase in Pakistan from July 01, 2024. Estimates suggested a rise of Rs 7.54 per litre for petrol and Rs 9.84 per litre for HSD for the next two weeks.

These estimates are based on current government taxes and profit margins for oil marketing companies (OMCs).

Currently, the government charges a petroleum levy (PL) of Rs 60 per litre on both petrol and HSD, with no additional GST.

Petrol price likely to come down

If the government decides to raise the PL by Rs 5 per liter for both fuels, the price increase could be even higher, reaching Rs 12.54 and Rs 14.84 per litre for petrol and HSD respectively.

The recently proposed Finance Bill 2024 allowed the government to raise the PL to a maximum of Rs 80 per litre, potentially generating additional revenue.

The price hike comes amid a surge in international oil prices.

Over the past two weeks, petrol and HSD prices have increased by about $ 4.4 and $ 5.5 per barrel respectively.

The final decision on pricing will be made on 30th June in consultation with the Finance Division.

The Oil and Gas Regulatory Authority (Ogra) will submit its recommendations to the government for consideration on the same day.

This rise in fuel costs is expected to impact the prices of kerosene oil and light diesel oil (LDO) as well. Estimates suggested an increase of Rs 7.70 per litre for kerosene oil and Rs 8.73 per litre for LDO.

Copyright Business Recorder, 2024