Fuel prices likely to increase
The estimated increase includes Rs6.60 per litre increase in petrol and Rs5.27 per litre (1.9 percent) rise in High-Speed Diesel (HSD). However, other petroleum products - kerosene oil and Light Diesel Oil (LDO) - may witness reductions of Rs3.74 (2 percent) and Rs2.23 per litre (1.3 percent), respectively.
The estimates are based at Rs78.02 per litre Petroleum Levy (PL) and CSL on petrol and Rs77.01 per litre PL/CSL on HSD. Inland Freight Equalization Margin (IFEM) is assumed at Rs8.89 per litre on petrol and Rs6.04 per litre on HSD. Exchange rate adjustment on petrol may be Rs3 per litre on petrol and Rs2 per litre on HSD.
Govt hikes petrol price by Rs8.36, diesel by Rs10.39 per litre
According to the estimates, the premium on petrol is $9.68 per bbl and $3.25 per bbl on HSD.
The Oil and Gas Regulatory Authority (OGRA) will finalise its recommendations on 15 July based on the latest global market trends and government's budgetary target of PL and carbon tax and Finance Division will announce new petroleum prices.
In case the estimates of oil industry implements, the price of petrol would go up from Rs266.79 per litre to Rs273.39 per litre and HSD's price would rise from Rs272.98 to Rs278.25 per litre.
On July 1, the federal government has increased petrol and HSD prices significantly attributing the hike to global market volatility amid the Iran-Israel war. Petrol increased by Rs8.36 to Rs266.79 per litre, and HSD by Rs10.39 to Rs272.98, based on OGRA's recommendation.
Pakistan imports refined petrol around 85 percent of its petroleum consumption and 15 percent crude oil.
Copyright Business Recorder, 2025
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