Govt May Increase Prices of Diesel and Petrol

Staff Report

The prices of petrol and high-speed diesel (HSD) are expected to rise by Rs 7.54 and Rs 9.84 per litre, respectively, for the next fortnight, starting from July 1, 2024.

According to oil marketing companies (OMCs) estimates, the ex-depot price of petrol is likely to increase from Rs 258.16 to Rs 265.70 per litre, and HSD’s price is expected to rise from Rs 267.89 to Rs 277.73 per litre.PM Shehbaz Sharif and Bill Gates Discuss Economic Stability and Polio Eradication in Pakistan

These calculations are based on current government taxes and margins. The government is charging Rs 60 per litre as a petroleum levy (PL) on petrol and HSD, while exempting them from GST. If the government decides to raise the PL on both petrol and HSD by Rs 5 per litre, the price of petrol could increase further by Rs 12.54 per litre and HSD by Rs 14.84 per litre, respectively. The Finance Bill 2024 has proposed a maximum PL limit of Rs 80 per litre, aiming to collect Rs 1.28 trillion in the new fiscal year, up from the outgoing fiscal year’s estimates of Rs 869 billion.

The prices of kerosene oil and light diesel oil (LDO) are also likely to increase by Rs 7.70 per litre, from Rs 171.81 to Rs 179.51 per litre, and by Rs 8.73 per litre, from Rs 156.12 to Rs 164.85 per litre, respectively.

Over the past fortnight, international prices for petrol and HSD have surged by approximately $4.4 and $5.5 per barrel, respectively. The premium on petrol is calculated at $9.590 per barrel and $6.50 per barrel, remaining the same as the previous review.

The final decision will be made in consultation with the Finance Division on June 30. On the same day, the Oil and Gas Regulatory Authority (OGRA) will send its recommendations to the federal government for consideration.