The Pakistan petrol price increase has taken effect as the federal government raised the prices of petrol and High-Speed Diesel (HSD) for the next three days. The new rates came into effect at midnight on Friday and will remain in force until Monday, July 20.
Govt Raises Petrol by Rs 5.44 and HSD by Rs 31.05 Until Monday
According to the Petroleum Division, the fuel price increase is due to higher international oil prices and rising import costs. Petrol will now cost Rs316.15 per litre after an increase of Rs5.44 per litre. High-speed diesel (HSD) will be sold at Rs354.35 per litre following an increase of Rs31.05 per litre.
Why Fuel Prices Were Increased
Pakistan imports most of its fuel products, so changes in international oil prices directly affect local fuel rates. The latest Petrol Price in Pakistan Today reflects higher global oil prices and increased import costs. According to officials, the current revision was made in line with international market conditions. Before setting fuel prices, the government reviews several factors, including global oil prices, import costs, taxes, and other charges that make up the final price paid by consumers.
Read more: Petrol prices may rise as government plans nearly 2x carbon levy increase in new budget
Earlier on Friday, Petroleum Minister Ali Pervaiz Malik announced a new fuel pricing system. Under the new policy, fuel prices will be revised daily instead of every week. The minister said this change will help fuel prices respond more quickly to changes in the international oil market. The Oil and Gas Regulatory Authority (OGRA) would set daily prices and criteria involved.
Fuel Taxes Remain in Place
Fuel prices also involve several government levies and taxes. Customs duty, petroleum levy, climate support levy, and inland freight equalization margin are some of the taxes. In total, the taxes are about Rs 105 per litre for both petrol and HSD. Fuel prices are an essential element in the final cost that people pay when they purchase fuel from fuel pumps. The All Pakistan Dealers Association has not agreed with the government’s move to revise the fuel prices daily. The association says that it will deliberate on the matter next week.
Petrol dealers say daily fuel price changes could make it difficult for petrol pump owners and customers. The Pakistan Petrol Price Cut is expected to provide temporary relief for many consumers, but daily revisions may still create challenges. Petrol is mainly used by private cars, motorcycles, rickshaws, and other small vehicles. Any increase or decrease in petrol prices directly affects household transportation costs. High-speed diesel (HSD) is widely used by buses, trucks, factories, construction machinery, power plants, and large generators. Changes in HSD prices can also affect transport costs, business expenses, and the prices of goods and services.
Read more: Petrol and Diesel Prices Still Carry 29% Tax Despite Recent Cut
Petrol and HSD Play a Major Role
Petrol and High-Speed Diesel (HSD) are the two most widely used fuels in Pakistan and generate most of the country’s petroleum revenue. The recent Pakistan Petrol Price Statement has once again highlighted their importance to the economy. Monthly sales of petrol and HSD are estimated at 700,000 to 800,000 tonnes, while kerosene demand is around 10,000 tonnes per month. Because these fuels are used across the country, changes in their prices can affect transportation costs, businesses, and the overall economy.
New fuel prices will remain valid till Monday, July 20, when petrol prices increase by Rs5.44, and HSD prices increase by Rs31.05 per liter. The new price policy for the fuel means that OGRA will be responsible for setting fuel prices and giving out reasons for each change of price in the light of international market conditions. News source eTimes Pakistan.
