ISLAMABAD: The federal government has announced an increase in petrol prices by Rs7.45 per litre, raising the cost from Rs258.16 to Rs265.61 per litre. This change will take effect from July 1, reflecting the rising trend in the international market.
New Fuel Prices:
Petrol: Increased by Rs7.45, now Rs265.61 per litre
High-Speed Diesel (HSD): Increased by Rs9.56, now Rs277.45 per litre
Reason for Price Hike:
The Finance Division attributed the price hike to the increasing trend in the international market. According to the official notification, these adjustments were calculated by the Oil and Gas Regulatory Authority (Ogra) based on international price variations over the last fortnight.
Detailed Price Changes:
| Product | Existing Price | New Price | Increase/Decrease |
|---|---|---|---|
| Petrol | Rs258.16 | Rs265.61 | +Rs7.45 |
| High-Speed Diesel (HSD) | Rs267.89 | Rs277.45 | +Rs9.56 |
Unchanged Taxes and Duties:
The Finance Division clarified that there will be no changes in the applicable taxes and duties. Despite the increase in prices, the government will maintain the existing levels as specified in the Budget FY25.
Earlier this month, during the federal budget announcement for fiscal year 2024-25 on June 12, the government increased the petroleum development levy (PDL) by Rs10 per litre—from Rs60 to Rs70—further straining the inflation-hit masses. However, Finance Minister Muhammad Aurangzeb clarified that the increased levy on petroleum products would not be imposed immediately, meaning the PDL remains unchanged in this review.
Historical Context:
This is the first price increase since the budget announcement. In the previous four fortnightly reviews, the government had provided a cumulative relief of Rs35 per litre by decreasing the petrol price, offering some respite to consumers amid inflationary pressures.
Implications for Consumers:
The recent hike in fuel prices is expected to impact various sectors, including transportation and manufacturing, leading to increased costs for goods and services. Consumers, already grappling with inflation, will face further financial burdens as the new prices come into effect.
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