Pakistan Jacks Up Petroleum Prices for First Half of July 2024

Pakistan Jacks Up Petroleum Prices for First Half of July 2024

Islamabad, July 1, 2024 – Pakistan has announced an increase in petroleum prices for the first half of July 2024, attributing the hike to a rising trend in the international market.

According to a notification issued by the Finance Division, the price of petrol has been increased by Rs 7.45 per litre, bringing the new price to Rs 265.61 per litre from the previous Rs 258.16. This change is in response to fluctuations in global oil prices, as determined by the Oil and Gas Regulatory Authority (OGRA).

Similarly, the price of high-speed diesel (HSD) has seen a significant increase. It has gone up by Rs 9.56, setting the new price at Rs 277.45 per litre. These new rates will be effective from July 1.

ProductExisting PriceNew PriceIncrease
PetrolRs 258.16Rs 265.61+Rs 7.45
High-Speed Diesel (HSD)Rs 267.89Rs 277.45+Rs 9.56

“The prices of petroleum products have seen an increasing trend in the international market during the last fortnight,” the official notification stated.

This adjustment in fuel prices is the first since the announcement of the federal budget for the fiscal year 2024-25 earlier this month on June 12. The Finance Division also confirmed that there would be no changes in the applicable taxes and duties, maintaining them at their current levels as outlined in the Budget FY25.

However, the government had increased the petroleum development levy (PDL) by Rs 10 per litre—from Rs 60 to Rs 70—in the budget. This additional levy has not been imposed immediately, as Finance Minister Muhammad Aurangzeb clarified earlier today. The PDL remains unchanged in the latest fuel price review.

Before this hike, the government had provided a cumulative relief of Rs 35 per litre by decreasing petrol prices over the last four fortnightly reviews. The recent increase reverses this trend, likely adding to the financial burden of consumers already grappling with inflation.

The government’s decision to raise petroleum prices comes amid an ongoing economic challenge, with the aim of aligning domestic prices with global trends. The move is expected to have wide-ranging effects on the cost of goods and services, further impacting the daily lives of Pakistani citizens.