Petroleum Product Prices Set to Rise by Rs 4 Per Litre

News Desk

Islamabad: Motorists could be in for another increase in fuel costs as petrol and high-speed diesel (HSD) prices are expected to edge up on Thursday, driven by higher international oil prices, import premiums and petroleum taxes that continue to underpin government revenue.
Industry estimates suggest petrol could become costlier by Rs3 to Rs4 per litre, while HSD may see an increase of around Rs1 to Rs1.50 per litre. The expected revision follows modest movements in global fuel markets and higher import costs faced by Pakistan State Oil (PSO).
According to industry sources, international petrol prices have risen by around 50 cents per barrel over the past two weeks to about $90.78 per barrel. Diesel prices, meanwhile, have remained broadly stable, easing slightly to around $101.05 per barrel. Despite the relatively small changes, increased import premiums on petrol cargoes are expected to push domestic prices higher, while light diesel oil is likely to remain unchanged.
The anticipated increase comes just two weeks after the government raised petrol prices by Rs2.73 per litre to Rs275.73 and HSD by Rs8.37 per litre to Rs287.33.
Beyond global oil trends, taxation remains a key factor shaping fuel prices. The government currently charges the maximum petroleum levy of Rs60 per litre on both petrol and diesel, alongside other taxes and duties, as part of its fiscal commitments under the International Monetary Fund (IMF) programme.
Petroleum products remain one of the government’s largest sources of indirect revenue. While authorities had targeted hundreds of billions of rupees in petroleum levy collections during the fiscal year, revised revenue goals have increased the importance of maintaining strong fuel tax receipts.
Any increase in petrol prices is likely to add to household transportation expenses, particularly for commuters using motorcycles, rickshaws and private vehicles. A rise in diesel prices carries broader economic implications, as it directly affects freight transport, agriculture and public transport, often contributing to higher prices of food and other essential commodities.