Pakistan petrol and diesel prices are substantially today with the federal government due to announce revised prices of petroleum products for the upcoming fortnight. The new rates will take effect once they have been approved from July 18.
Preliminary estimates that petrol will be more expensive by approximately Rs10 per litre while high-speed diesel (HSD) will be far more expensive – perhaps by as much as Rs40 per litre. The forecast increase comes as a sharp uptick in crude oil prices in international markets following a renewed outbreak of geopolitical tensions in the Middle East.
Now petrol costs Rs310.71 per litre and high speed diesel (HSD) costs Rs323.30 per litre. Petrol may go over Rs320 per litre while diesel may be more than Rs350 per litre for the first time in the past few weeks if the proposed revision is accepted without changes.
The Oil and Gas Regulatory Authority (OGRA) has completed pricing calculations and made recommendations to the federal government, officials said. But the actual hike will be subject to government’s decision, since authorities are reportedly considering tweaks to the petroleum levy in order to minimize the financial burden on consumers.
An expected significant rise in diesel fuel prices will have a broader economic impact, due to the current high usage of this fuel in public transport, agriculture and the goods transport sector. A sudden surge would just mean higher freight charges which could result in the rise of prices of commodities across the country.
After considering the recommendation of the OGRA, the Ministry of Finance is expected to issue the official notification later today. These are still estimates until the revised petroleum prices are officially announced and may change before that.
