Pakistani consumers are likely to face an increase in petrol and high-speed diesel (HSD) prices starting July 1, 2024. Estimates suggest a potential rise of Rs 7.54 per liter for petrol and Rs 9.84 per liter for HSD for the next two weeks.

These estimates are based on the current government taxes and profit margins for oil marketing companies (OMCs). The government currently charges a petroleum levy (PL) of Rs 60 per liter on both petrol and HSD, with no additional GST.

The price increase could be even higher if the government decides to raise the PL by Rs 5 per liter for both fuels, potentially reaching Rs 12.54 and Rs 14.84 per liter for petrol and HSD respectively.

The Finance Bill 2024 allows the government to raise the PL to a maximum of Rs 80 per liter, potentially generating additional revenue.

This price hike comes amid a surge in international oil prices. Over the past two weeks, petrol and HSD prices have increased by about $ 4.4 and $ 5.5 per barrel respectively.

Final decision on pricing will be made on June 30 in consultation with the Finance Division. The Oil and Gas Regulatory Authority (Ogra) will submit its recommendations to the government for consideration on the same day.

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This rise in fuel costs is expected to impact the prices of kerosene oil and light diesel oil (LDO) as well.

Estimates suggest an increase of Rs 7.70 per liter for kerosene oil and Rs 8.73 per liter for LDO.