By Staff Reporter
ISLAMABAD: The government is expected to raise the prices of petrol and high-speed diesel (HSD) by Rs2-3 per litre starting Wednesday for the first half of October, driven by volatility in global oil markets, according to official estimates.
The ex-depot price of petrol, currently at Rs264.61 per litre, is projected to increase by Rs1.90-2 per litre, while HSD, priced at Rs272.77 per litre, may see a hike of approximately Rs2.50 per litre, or about 1%, the estimates showed.
Since mid-May, both fuels have already experienced a net price increase of roughly Rs13 per litre, adding pressure on consumers and businesses. Petrol, widely used in motorcycles, rickshaws, and small vehicles, is a critical expense for middle- and lower-income households. HSD powers heavy transport vehicles, trains, and agricultural machinery, making it a key driver of inflation through its influence on freight and food prices.
Transporters had raised fares earlier this year following a Rs27 per litre surge in HSD prices between May and August. Despite a recent partial rollback of Rs13 per litre, fares have not been adjusted downward, exacerbating costs for consumers.
The government also anticipates increases in the prices of kerosene and light diesel oil, by about Rs4.50 and Rs1.75 per litre, respectively, further impacting households reliant on these fuels for heating and small-scale power generation.
Pakistan currently levies no goods and services tax (GST) on petroleum products but imposes significant duties, including Rs79.50 per litre on diesel and Rs80.52 per litre on petrol and high-octane products. These levies incorporate a Rs2.50 per litre charge under the Customs Service Levy (CSL). Additionally, customs duties of approximately Rs16-17 per litre apply to both petrol and diesel, regardless of whether the products are imported or locally refined.
The latest price adjustments reflect the government’s practice of passing on global oil price changes to consumers, a policy tied to its fiscal obligations under international lending agreements
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