Islamabad, July 14, 2024 – Pakistan is scheduled to review petroleum prices for the second half of July on Monday, July 15, 2024, with new prices taking effect from July 16, 2024.
Experts anticipate a rise in domestic petroleum prices, driven by recent increases in global oil prices. Over the past two weeks, crude oil prices have surged by approximately $4 per barrel, and High-Speed Diesel (HSD) prices have climbed by $2 per barrel. The premium on petrol has risen to $8.76 per barrel, and for HSD, it stands at $6.50 per barrel.
This uptick in international prices is expected to result in a domestic increase of Rs7.55 per litre for petrol and Rs3.52 per litre for HSD. Consequently, the price of petrol is likely to rise from Rs265.61 to Rs273.16 per litre, while HSD may increase from Rs277.45 to Rs280.97 per litre.
Additionally, kerosene oil and Light Diesel Oil (LDO) are also expected to see price hikes. Kerosene oil may increase by Rs2.39 per litre, raising the price from Rs181.86 to Rs184.25. LDO is projected to see a smaller increase of Rs0.92 per litre, taking the price from Rs165 to Rs166.65 per litre.
In response to these price adjustments, the government has raised the maximum limit on the Petroleum Levy (PL) to Rs70 per litre. This move is a precautionary measure aimed at generating additional revenue, though the government has stated there are no immediate plans to implement the full levy. Currently, the government charges around Rs60 per litre in PL on both petrol and HSD, with zero General Sales Tax (GST) applied to petroleum products.
The review of petroleum prices comes at a critical time for Pakistan, as the country grapples with economic challenges and seeks to balance revenue generation with consumer affordability. The anticipated price increases are likely to have widespread implications, affecting transportation costs and the overall cost of living.
As the government prepares to announce the new prices, stakeholders and consumers are bracing for the impact of these adjustments on their daily lives. The outcome of the price review will be closely monitored, with many hoping for measures to mitigate the burden on the public.