Petrol, diesel prices set to increase in Pakistan from July 1

As Pakistan braces for the onset of a new fiscal year, citizens are bracing themselves for an imminent rise in fuel prices, marking the first adjustment since the announcement of the Budget 2024-25 earlier this month.

Under the leadership of Prime Minister Shehbaz Sharif, the federal government is preparing to implement a significant hike in petrol and diesel rates, scheduled to take effect from July 1. This adjustment comes as part of the government's strategy to align with the fiscal policies outlined in the recently presented budget.

The cornerstone of this price revision lies in the Finance Bill 2024, where policymakers have proposed a substantial increase in the maximum petroleum levy. Initially set at Rs60 per litre, this levy is expected to surge by Rs20, catapulting it to Rs80 per litre. This move aims to bolster the government's revenue streams, particularly crucial amid ongoing negotiations for a bailout package with the International Monetary Fund (IMF).

Presently, the prices of petrol and high-speed diesel (HSD) stand at Rs258.16 and Rs267.89 per litre, respectively, following a marginal reduction earlier this month. However, with the impending levy adjustment, consumers nationwide are likely to face a sharper increase at the pump.

Market analysts have warned that this hike in the petroleum levy will invariably lead to elevated fuel costs, directly impacting household budgets and business operations across the country. The exact magnitude of the price surge will be confirmed on June 31, pending the finalization of government decisions.

This impending rise in fuel prices comes at a precarious time when Pakistanis are already grappling with inflationary pressures and economic uncertainties. The anticipated hike is expected to further burden the public, potentially triggering broader implications for the overall cost of living and economic stability.

As the nation awaits further details from the government regarding the revised fuel prices, stakeholders and the public alike are urged to stay informed amid these developments, which could have far-reaching consequences on Pakistan's economic landscape.