Petrol and high-speed diesel (HSD) prices are set to increase from July 1, reversing the trend of four consecutive price reductions.
The anticipated increases are Rs7 per litre for petrol and Rs8 for HSD, driven by rising international market rates.
Recent reports indicate that international prices for petrol and HSD have climbed by $4.4 and $5.5 per barrel, respectively, over the last two weeks. This surge may result in higher domestic prices, especially if the government decides to increase the Petroleum Development Levy (PDL) from its current rate of Rs60 per litre.
The Finance Bill 2024 has proposed raising the PDL ceiling to Rs80 per litre to achieve a revenue target of Rs1.28 trillion for the next fiscal year, up from Rs960 billion this year. Finance Minister Muhammad Aurangzeb stated that the PDL will be adjusted gradually, following market trends.
Petroleum and electricity costs significantly influence inflation, impacting the middle and lower-middle classes and the prices of essential goods.
