Petrol and diesel prices are expected to go up again from July 16. Petrol price may increase by Rs. 5.25 per litre and high-speed diesel (HSD) by Rs. 6.50 per litre. If approved, the new ex-depot price of petrol will be around Rs. 272.04 per litre, up 2%. Diesel is expected to rise to about Rs. 279.48 per litre, which is a 2.5% increase. These prices still need a final nod from the government.
Current Petrol Prices
Right now, petrol is priced at Rs. 266.79 per litre. It had already gone up by Rs. 8.36 on June 30. Since petrol is widely used in motorcycles, rickshaws, and private vehicles, this price rise will affect daily expenses for many middle- and low-income families.
Diesel is currently at Rs. 272.98 per litre, after a Rs. 10.39 increase earlier this month. Diesel powers trucks, buses, tractors, and trains. When diesel gets expensive, the cost of moving goods and food also goes up. Transporters are already adjusting fares in anticipation of the increase.
Not all fuel prices are going up. Kerosene might drop by Rs3.80 per litre, and light diesel oil may fall by Rs2.25. These fuels are used in certain industrial and domestic settings, so the drop will bring some limited relief.
Where the Money Goes
Even with zero general sales tax on fuel, the government collects nearly Rs. 98 per litre in total charges. This includes:
- Petroleum development levy: Rs. 78.02 on petrol, Rs. 77.01 on diesel
- Climate support levy: Rs. 2.25 per litre
- Customs duty: Rs. 20 to Rs. 21 per litre on both locally refined and imported fuel
On top of that, oil marketing companies and dealers earn around Rs. 17 per litre in distribution and retail margins.
Oil prices have been unstable. Brent crude fell by 79 cents to $69.57 a barrel. US crude dropped by $1.07 to $67.38. Prices had jumped earlier when Washington hinted at stronger sanctions on Russian oil exports, but then fell again as traders saw time for possible negotiations.
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