Due to the global oil crisis, the price of petrol and diesel in Pakistan is likely to increase by Rs 40 per litre
ISLAMABAD – A major hike in fuel prices is expected in today’s weekly review, with high-speed diesel likely to cost up to Rs 40 per liter and petrol by up to Rs 10 per litre, as escalating tensions between Iran and the US continue to send shock waves through global oil markets.
The expected increase is driven by a sharp rise in international crude oil prices following renewed geopolitical instability in the Middle East. The revised prices are expected to come into effect from July 18, although the government is reportedly considering a reduction in the petroleum levy to ease the financial burden on consumers.
Petrol prices in Pakistan.
| Product | Rs/ litre |
| Petrol | 310.71 |
| Diesel | 323.30 |
The current price of petrol is Rs 310 and may go up to Rs 320 while diesel, which is widely used in public transport, may go above Rs 350 per liter from July 18. The final decision will be made by the Finance Division.
Amid fears of a price hike, the government has also ordered a nationwide crackdown on hoarding of petroleum products. The National Committee for Monitoring and Coordination has taken serious notice of reports that unscrupulous market players are hoarding fuel in anticipation of a price hike.
The committee directed the Oil and Gas Regulatory Authority (OGRA) to initiate immediate action against those involved in hoarding and market manipulation to ensure uninterrupted supply of fuel across the country.
As crude oil prices continue to rise, the government has simultaneously introduced significant changes in the petroleum export taxation policy.
Under the revised rates, effective July 16, diesel export duty has been increased from Rs 8.5 to Rs 15.5 per litre, a sharp increase of Rs 7 per litre. Aviation Turbine Fuel (ATF) export duty has been increased from Rs 7.5 to Rs 14.5 per litre. To provide relief to exporters, the petrol export duty has been reduced from Rs 4 to Rs 2.5 per litre.
The government reviews international crude oil prices and refining margins every two weeks to determine domestic petroleum prices and taxes. This mechanism is designed to ensure adequate availability of fuel in the domestic market while preventing companies from making excessive export profits at the expense of domestic consumers.
Pakistan is facing the threat of fuel shortage as the oil industry has issued a red alert.
The post is likely to increase the prices of petrol and diesel in Pakistan by Rs 40 per liter due to the global oil crisis appeared first on Daily Pakistan News.
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