Petrol, diesel prices in Pakistan likely to go up from July 1

Prime Minister Shehbaz Sharif's federal government is set to announce a significant increase in petrol prices, effective July 1, in accordance with the implementation of the Budget 2024-25.

This marks the first price adjustment since the budget for the fiscal year 2024-25 was unveiled on June 12.

In the newly proposed Finance Bill 2024, the government has introduced a substantial hike in the maximum petroleum levy, increasing it by Rs20 to reach Rs80 per litre.

This adjustment is expected to considerably impact the prices of petrol and high-speed diesel (HSD) nationwide.

Currently, petrol is priced at Rs258.16 per litre, while HSD stands at Rs267.89 per litre, following a reduction earlier this month by Rs10.20 and Rs2.33, respectively. However, with the new levy in place, these prices are anticipated to rise significantly.

The petroleum levy is a crucial revenue stream for the government, which is striving to strengthen its finances and secure another bailout package from the International Monetary Fund (IMF).

This move aims to boost the government’s revenue, targeting Rs12.97 trillion for the Federal Board of Revenue (FBR) in the upcoming fiscal year.

Market analysts predict that the increase in the petroleum levy will directly result in higher fuel costs for consumers. The precise extent of the price rise will be confirmed on June 31, when the government finalizes the revision.

The expected surge in fuel prices comes at a time when the public is already grappling with inflationary pressures, and this development is likely to exacerbate the economic burden on households and businesses alike.