Petrol prices are expected to increase in Pakistan from July 1 after four consecutive price cuts, sources said on Thursday. Petrol is projected to increase by Rs7 per litre and HSD by Rs8 per litre due to higher international market rates. The international prices for petrol and HSD have risen by $4.4 and $5.5 per barrel, respectively, in the last fortnight. The hike in petrol prices could lead to domestic price hikes, potentially more significant if the government raises the Petroleum Development Levy (PDL) from the current Rs60 per litre. Previously, Pakistan slashed petrol and HSD prices due to a slump in the international market. Since May 1, petrol prices have decreased by approximately Rs35 per litre, dropping from around Rs294 on April 30 to about Rs259. Similarly, HSD prices have fallen by roughly Rs22 per litre, decreasing from over Rs290 in mid-April to Rs268. However, the Finance Bill 2024 has raised the PDL limit to Rs80 per litre. Finance Minister Muhammad Aurangzeb, however, announced on June 13 that PDL would be gradually increased depending on the pricing trend.

Credit: Independent News Pakistan