Fuel Prices Expected to Rise Amidst Surge in Global Oil Rates

In 2024, global oil prices experienced significant fluctuations, reaching a peak of $91.17 per barrel on April 10, before dropping to $70.17 per barrel by September 10. As of December 31, the price stood at $74.64 per barrel. However, at the start of the new year, Brent Crude oil prices saw a $7 per barrel increase, rising to $81.31 per barrel.

The price of the US dollar has also seen a slight increase, rising from 276.99 PKR to 278.70 PKR, further influencing fuel prices in Pakistan. With these changes, experts predict that petrol prices may rise by up to 10 PKR per liter, given the increase in both oil prices and the dollar exchange rate.

The last adjustment in fuel prices was on December 31, when the government raised the price of petrol by 55 paisas, bringing it to 252.66 PKR per liter. At that time, crude oil was priced at $74.64 per barrel, but with the current price now at $81.31 per barrel, an increase in petrol rates is anticipated.

The final decision on the adjustment of fuel prices will be made on January 15, based on the summary from the Ministry of Finance and OGRA.

**Sales Tax and Petroleum Levy on Fuel**

Currently, no sales tax is being levied on petroleum products, but a petroleum levy of 60 PKR per liter is being collected on petrol and diesel, while a nominal levy of 5 paisas is being charged on kerosene oil and light diesel.