Petrol Prices in Pakistan Likely to Increase From August 1

The Petrol Prices in Pakistan are expected to increase from August 1 as the Government will be unable to pass on the benefit of the recent decline of oil prices in the international market to the end consumer due to the constant devaluation of Pakistani Rupee against the US Dollar (USD to PKR).

According to the details, the oil prices in the international market have seen a significant decline but the Government will be unable to pass on the benefit to the consumers in the country as the Pakistani Rupee has been in a constant downward spiral against the US Dollar since the last couple of days.

The depreciation of the local currency will possibly result in an increase in the Petrol Prices in Pakistan alongside the hike in the petroleum levy (PL) as per terms agreed with the International Monetary Fund (IMF) to get the next tranche of the $6 billion loan programme.

According to the details, the Petrol Price in Pakistan is expected to be increased by Rs. 10 per litre, while High-Speed Diesel (HSD) will likely be increased by Rs. 17 per litre. However, these projections do not include an increase in the petroleum levy (PL).

If the Government decides to increase the petroleum levy (PL) by Rs. 5, which was agreed with the International Monetary Fund (IMF), then Price of Petrol will likely be increased by Rs. 15 per litre, while a hike of of Rs. 23 per litre is expected for High-Speed Diesel (HSD).

It is pertinent to mention that expected rise in POL products does not include an increase in dealers’ margin (DMs) by Rs. 2.10 per litre on Petrol and Rs. 2.87 per litre on Diesel that was approved by the Economic Coordination Committee (ECC), which will come into effect from 1^st August 2022 if approved by the Federal Cabinet.