In response to international market trends, fuel prices in Pakistan are anticipated to increase significantly, with petrol and high-speed diesel (HSD) likely to rise by approximately Rs2.50 and Rs8.50 per litre, respectively, starting Monday, April 15, for the next two weeks. These adjustments come despite a reduction in import premiums and a slight strengthening of the rupee against the dollar.
The surge in international market prices, including a $4 increase per barrel for petrol and $4.50 for HSD over the past fortnight, is driving these price hikes. While the import premium for petrol has decreased by 21% to $10.7 per barrel, the rupee has appreciated by about 40 paisa against the dollar, leading to an estimated Rs2.80 per litre increase in petrol prices.
Conversely, HSD prices have risen internationally, with no change in the import premium of $6.50 per barrel paid by the benchmark Pakistan State Oil. This situation is expected to result in an Rs8 to Rs8.50 per litre increase in HSD prices, pending final adjustments based on exchange rates.
The current petrol price stands at Rs289.41 per litre, while HSD is priced at Rs282.24 per litre at the depot stage. These impending price adjustments follow a recent increase in petrol prices by Rs9.66 per litre and a decrease in HSD prices by Rs3.32 per litre for the previous fortnight.
The government, having reached the maximum permissible petroleum levy of Rs60 per litre, is on track to meet its target of collecting Rs869 billion in petroleum levies for the fiscal year. Despite a revised target of Rs920 billion by June, the government is expected to collect around Rs970 billion by the fiscal year’s end.
Currently, the government imposes approximately Rs82 per litre in taxes on both petrol and HSD, reflecting ongoing efforts to manage fuel pricing and revenue generation in line with international market dynamics.
