Pakistan Braces for Petrol Price Hike as July 1st Approaches

Pakistan petrol prices rising July 1st! Expected increase due to global oil & new levy. Get details & impact on consumers.

KARACHI, Pakistan (June 30, 2024):  Motorists in Pakistan can expect to pay more at the pump starting tomorrow, July 1st, as the government implements revised fuel prices. This change coincides with the rollout of the Finance Bill 2024-25.

Key Factors Driving the Increase:

• Global Oil Market: Rising International crude oil prices are a significant contributor to the anticipated hike.
• Increased Petroleum Levy: The Finance Bill proposes a notable increase in the maximum petroleum levy (PDL) from Rs.60 to Rs.80 per liter. This levy is a tax on petroleum products that generates revenue for the government.

Expected Price Increase:

• While the exact price adjustment is yet to be officially announced, industry sources estimate an increase of around Rs.7 to Rs.9.84 per liter for petrol in the first half of July.
• Diesel prices are also anticipated to rise, with projections ranging from Rs.9.84 to Rs.14.84 per liter depending on the final levy increase.

Impact on Consumers:

This price hike comes after a recent reduction in petrol prices earlier this month, which provided temporary relief to consumers. The upcoming increase is likely to strain household budgets and potentially impact transportation costs.

Government's Stance:

The government aims to generate additional revenue through the increased PDL to meet fiscal targets and potentially secure another bailout package from the International Monetary Fund (IMF).

Uncertainties Remain:

• The final extent of the levy increase and the corresponding price adjustments are still to be officially confirmed.
• The government may choose a phased approach, implementing the levy increase gradually to lessen the immediate impact on consumers.

Looking Ahead:

The revised fuel prices are expected to take effect on July 1st, 2024. Stay tuned for further updates as the government makes the official announcement. This situation will likely continue to develop in the coming days, so we recommend checking credible news sources for the latest information.