Fuel Price Hike
The prices of petroleum products in Pakistan are likely to rise once again as authorities prepare for the upcoming fortnightly price review scheduled for June 16.
A preliminary working paper compiled by relevant departments suggests an upward revision in the prices of key fuels, reflecting international market trends and domestic fiscal considerations.
According to sources familiar with the matter, petrol prices are expected to go up by Rs1.12 per litre, while high-speed diesel (HSD) could see a sharper hike of Rs5.27 per litre. Kerosene oil may also become more expensive, with a proposed increase of Rs4.13 per litre.
These recommendations have been drafted based on calculations by the Oil and Gas Regulatory Authority (OGRA) and will be reviewed by the Ministry of Finance in consultation with Prime Minister Shehbaz Sharif before being finalized.
Earlier this month, the government had already implemented a marginal increase in petrol prices, raising them by Re1 per litre—from Rs252.63 to Rs253.63—effective from June 1.
At that time, the price of high-speed diesel remained unchanged at Rs254.64 per litre. These adjustments were made in response to fluctuations in the global oil market and the depreciation of the Pakistani rupee against the dollar.
While the proposed Rs1.12 increase in petrol might appear modest, the Rs5.27 hike in diesel is expected to have a more significant impact on the economy. Diesel is a primary fuel for Pakistan’s transport and agricultural sectors.
An increase in its price typically leads to higher costs of transporting goods, which can, in turn, drive up prices of essential commodities such as fruits, vegetables, and other daily-use items.
This fuel price hike comes at a time when the general public is already grappling with inflationary pressures, high electricity tariffs, and a weak job market. For daily wage earners, small business owners, and transport sector workers, any increase in diesel prices directly translates into reduced earnings or increased operational costs.
The government’s policy of fortnightly price reviews, based on international oil price trends and local taxation policies, has drawn criticism from various quarters.
While officials argue that these adjustments are necessary to ensure fiscal balance and prevent massive subsidies, many believe that the frequent revisions are adding to public hardship.
If the proposed changes are approved, consumers should brace for another wave of cost escalations. The final decision on the new fuel prices is expected by June 15 and will be implemented starting June 16.
