ISLAMABAD – A major fuel price hike is expected in today’s weekly review, with high-speed diesel likely to become costlier by up to Rs40 per litre and petrol expected to increase by around Rs10 per litre, as escalating tensions between Iran and the United States continue to send shockwaves through global oil markets.
The expected increase is being driven by sharp rise in international crude oil prices after renewed geopolitical instability in the Middle East. The revised prices are expected to take effect from 18 July, although the government is reportedly considering a reduction in the petroleum levy to cushion the financial burden on consumers.
Petrol Prices in Pakistan
| Product | Rs/Litre |
| Petrol | 310.71 |
| Diesel | 323.30 |
Current Petrol price stands at Rs310 and the price can go up to Rs320 whiel Diesel, which is widely used in public transport, can go above Rs350/litre from July 18. The final decision will be made by Finance Division.
Amid fears of rising prices, the government has also ordered a nationwide crackdown on the hoarding of petroleum products. National Committee on Monitoring and Coordination has taken serious notice of reports that unscrupulous market players are stockpiling fuel in anticipation of higher prices.
The committee directed the Oil and Gas Regulatory Authority (OGRA) to initiate immediate action against those involved in hoarding and market manipulation to ensure uninterrupted fuel supplies across the country.
As crude oil prices continue to soar, the government has simultaneously introduced significant changes to its taxation policy on petroleum exports.
Under the revised rates, effective 16 July, Diesel export duty has been increased from Rs8.5 to Rs15.5 per litre, marking a sharp Rs7 per litre increase. Aviation Turbine Fuel (ATF) export duty has been raised from Rs7.5 to Rs14.5 per litre. Petrol export duty has been reduced from Rs4 to Rs2.5 per litre to provide relief to exporters.
The government conducts review of international crude oil prices and refining margins every two weeks to determine domestic petroleum prices and taxation. The mechanism is designed to ensure adequate fuel availability in the local market while preventing companies from earning excessive export profits at the expense of domestic consumers.
Pakistan faces risk of fuel shortage as oil industry issues red alert
