Petrol Price In Pakistan Increased By Rs. 3.47/L

By Omar Faruq On Jan 15, 2025

The federal government of Pakistan has announced a revision in petrol price in Pakistan for the upcoming fortnight. These updated rates will take effect on January 16, 2025.

As per a notification issued by the Ministry of Finance, the price of petrol has been increased by Rs. 3.47 per liter, raising it from Rs. 252.66 to Rs. 256.13 per liter. Similarly, diesel prices have seen a rise of Rs. 2.61 per liter, bringing the new rate to Rs. 260.95 per liter, compared to the previous price of Rs. 258.34 per liter.

Earlier Predictions

Previously, media reports indicated that petrol prices could see a hike of Rs. 5-6 per liter, while diesel and kerosene might rise by Rs. 2-2.50 and Rs. 4 per liter, respectively.

Government-imposed levies drive a significant portion of fuel prices in Pakistan. Taxes alone contribute Rs. 76 per liter for both petrol and diesel, including a Rs. 60 petroleum development levy and Rs. 16 customs duty per liter.

Additionally, oil companies and dealers add Rs. 17 per liter through distribution and sales margins despite the absence of a general sales tax (GST) on petroleum products.

Such price increases have widespread implications across various sectors. For middle- and lower-income households, higher petrol costs strain budgets due to its extensive use in private vehicles and motorcycles. Diesel, crucial for heavy transport, agriculture, and trains, amplifies inflation by raising the costs of transporting goods, including everyday essentials like vegetables.

What are your thoughts on the anticipated petrol price hike in Pakistan? Do you think an increase in fuel prices would be justified? Share your opinions in the comments section below!