Islamabad, June 30, 2023: Pakistan has announced an increase in the price of High-Speed Diesel (HSD) by Rs7.5 per liter for the next 15 days, while keeping the price of petrol unchanged.
Finance Minister Muhammad Ishaq Dar made the announcement, stating that the new prices would come into effect from July 1, 2023.
The decision to raise the price of HSD comes in response to a recommendation by the Oil and Gas Regulatory Authority (OGRA), citing the upward trend in international markets. However, the government has attempted to minimize the impact of the increase on consumers.
The revised prices for petroleum products, effective from July 1 to July 15, 2023, are as follows:
Petrol: Rs 262 per liter
High-Speed Diesel: Rs 260.50 per liter
Kerosene: Rs 164.07 per liter
Light Diesel Oil: Rs 147.68 per liter
Previously, experts had speculated that the government’s announcement would also include an increase in the petroleum levy. The National Assembly recently approved a hike in the petroleum levy from Rs50 to Rs60 for the fiscal year 2023-24.
The government aims to generate approximately Rs870 billion through the petroleum levy in the upcoming fiscal year, demonstrating its determination to boost revenue despite challenges in the petroleum sector. In the previous fiscal year 2022-2023, the government initially set a target of Rs855 billion in petroleum levy collections but later revised it down to Rs542 billion. Consequently, the government faces the challenge of collecting an additional Rs328 billion in the upcoming fiscal year to meet its ambitious revenue goal.
The increase in the price of HSD is expected to have an impact on various sectors of the economy, particularly transportation and industries heavily reliant on diesel fuel. The decision to maintain the price of petrol aims to alleviate the burden on the general public, as petrol is the most commonly used fuel for private vehicles.
The government’s move to adjust fuel prices is part of its ongoing efforts to manage the impact of volatile international oil prices and maintain fiscal stability. It remains to be seen how these price adjustments will affect the overall economy and the daily lives of Pakistani citizens in the coming weeks.
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