Petroleum Prices in Pakistan Set to Increase by Up to Rs. 5 per Liter in the Next 24 Hours

Petroleum products in Pakistan are expected to see a price hike of up to Rs. 5 per liter in the next 24 hours, according to an initial working paper prepared by relevant authorities. The price revision is scheduled to come into effect starting June 16, ahead of the 15-day review.

Sources indicate that the proposed price increase includes an addition of Rs. 1.12 per liter for petrol, Rs. 5.27 per liter for high-speed diesel, and a suggested rise of Rs. 4.13 per liter for kerosene oil.

However, the final decision will be made by the Ministry of Finance in consultation with Prime Minister Shehbaz Sharif. The review will be based on recommendations from the Oil and Gas Regulatory Authority (OGRA), taking into account changes in international market prices and domestic tax adjustments.

### **Current Price Situation:**

Earlier this month, the government had increased the price of petrol by just Rs. 1 per liter, bringing the new price to Rs. 253.63 per liter, while the price of high-speed diesel was kept unchanged at Rs. 254.64 per liter.

### **Impact on the Public:**

Although the expected rise in petrol prices is relatively modest, the potential increase in diesel prices by over Rs. 5 per liter could have a significant impact. Diesel is widely used in transportation and agriculture, meaning that its price hike could lead to higher logistics costs and increased prices of essential food items.

For the general public, already grappling with inflation and rising utility bills, any further increase in fuel prices could reduce purchasing power and add additional costs to the business sector.

### **Conclusion:**

With the rising cost of fuel, particularly diesel, the overall economic burden on Pakistan’s citizens and industries may increase. This price revision, set to take effect in the next few hours, could bring additional challenges for consumers and businesses already struggling with inflation.