It has been proposed to hike petroleum products prices by up to Rs 8 per litre in Pakistan in the wake of an increase in global oil prices. US crude oil prices rose 3 per cent during the last fortnight, touching $80.25 per barrel, as against the price of London Brent oil, surging over 3.17 per cent to $84.50 per barrel. The revised price hike includes petroleum, diesel, and high-speed diesel (HSD).
It is expected that petrol prices will increase by Rs 8 per litre and those of high-speed diesel by Rs 7 per litre. On the other hand, the Federal government has announced increasing the petroleum levy from Rs 60 per litre to Rs 80 per litre with effect from July 1. The step has been taken as part of consideration of budget 2024-25 and is aimed at linking domestic prices in line with international market trends.
It was previously reduced by Pakistan because of its plunge in the international market. Since May 1, the price of petrol has reduced by about Rs 35 per litre, from about Rs 294 per litre on April 30 to about Rs 259 per litre. The prices for HSD have also gone down by about Rs 22 per litre from over Rs 290 in mid-April to Rs 268.
The Finance Bill 2024 increased the PDL limit to Rs 80 per litre. The Finance Minister, Muhammad Aurangzeb, said that the PDL would be increased in a graded manner depending on the prevailing pricing trend. So, it is foreseeable that the government, with this proposal, would equalize the ongoing prices of domestic fuel with international markets in order to maintain economic stability against the falling and rising trends in oil prices.
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