Petrol, diesel prices expected to rise in Pakistan

Change in price after four consecutive cuts is due to higher international market rates

Petrol and high-speed diesel (HSD) prices in Pakistan are expected to rise from July 1 after four consecutive price cuts.

Petrol is projected to increase by Rs7 per litre and HSD by Rs8 per litre due to higher international market rates.

According to media report that international prices for petrol and HSD have risen by $4.4 and $5.5 per barrel, respectively, in the last fortnight. This could lead to domestic price hikes, potentially more significant if the government raises the Petroleum Development Levy (PDL) from the current Rs60 per litre.

Read Govt likely to further slash petrol prices

Since May 1, the prices of petrol and high-speed diesel (HSD) in Pakistan have been declining due to a slump in the international market. Petrol prices have decreased by approximately Rs35 per litre, dropping from around Rs294 on April 30 to about Rs259.

Similarly, HSD prices have fallen by roughly Rs22 per litre, decreasing from over Rs290 in mid-April to Rs268.

The Finance Bill 2024 has raised the PDL limit to Rs80 per litre to collect Rs1.28 trillion, up from the Rs960 billion target for the outgoing fiscal year. Finance Minister Muhammad Aurangzeb indicated that the PDL would gradually increase based on pricing trends.

Petroleum and electricity prices are major inflation drivers in Pakistan, affecting the middle and lower-middle classes and essential goods' prices.