Pakistan may see an increase in fuel costs in the coming weeks as global oil prices rise. According to reports, fuel prices could rise by around Rs. 1 per litre, while high-speed diesel (HSD) could jump by Rs. 5 per litre. These changes are expected to take effect beginning June 16.
At present, the ex-depot price of petrol stands at Rs. 252.63 per liter. Since petrol is primarily used in private vehicles, motorcycles, and auto-rickshaws, any upward revision in its price would disproportionately affect middle- and lower-income groups.
On the other hand, diesel is a necessary fuel for large vehicles such as trucks, buses, and agricultural machinery. A litre currently costs Rs. 254.64. Fuel price increases are likely to have a knock-on impact, increasing the cost of transportation and food prices.
One of the main taxes the government levies on petroleum products, even though they are exempt from the general sales tax (GST), is the Petroleum Development Levy (PDL), which is Rs. 78.02 for petrol and Rs. 77.01 for diesel. For both fuels, a customs duty of Rs. 16 per litre is also necessary.
Customers’ overall financial burden is further increased by the profit margins and distribution charges of oil marketing organisations and dealers, which are Rs. 17 per litre.
