Pakistan is bracing for another increase in fuel prices as global crude oil rates surge, with petrol expected to rise by Rs 13 per litre and high-speed diesel by Rs 14 per litre, according to ARY News citing sources. The final approval for the revised petroleum rates is expected from Prime Minister Shehbaz Sharif after the new rates are announced.
Government maintains retail prices despite lower global oil prices
On June 28, the Pakistani government increased the petroleum levy on petrol and high-speed diesel (HSD) while leaving retail fuel prices unchanged for another week, despite a decline in international oil prices, as reported by The Express Tribune. According to figures released by Pakistan's Petroleum Division, the petroleum levy on HSD was raised by PKR 6.57 per litre to PKR 79.54 per litre, while the levy on petrol increased by 39 paisa per litre to PKR 66.64 per litre. The petroleum levy on kerosene oil remained unchanged at PKR 20.36 per litre.
Government opts for higher levy instead of passing on benefits
The revision came after the government decided not to pass on the benefit of lower global oil prices to consumers, opting instead to maintain petrol and diesel prices at existing levels for the coming week. However, the government reduced the price of kerosene oil by PKR 6.85 per litre. According to a notification issued by Pakistan's Oil and Gas Regulatory Authority (OGRA), the new price of kerosene has been fixed at PKR 227.05 per litre, down from PKR 233.90 per litre, as reported by The Express Tribune.
Petroleum levy increase only on petrol and diesel
Officials in the country's Petroleum Division said the increase in the petroleum levy applies only to petrol and high-speed diesel, while the levy on kerosene has not been revised. The latest changes mean consumers will continue paying the same retail prices for petrol and diesel, even as the government's revenue from the petroleum levy on the two fuels has increased. The expected hike due to global crude surge could further strain household budgets in Pakistan, where inflation remains high.
