Petrol Prices to Spike by Up to Rs6.60 per Litre in Pakistan Starting July 16

Pakistan is bracing for a sharp increase in fuel prices starting July 16, with petrol prices projected to rise by Rs6.60 per litre and high-speed diesel by Rs5.27 per litre. The adjustment will push petrol close to Rs273.39 per litre and diesel near Rs278.25 per litre, marking one of the highest increases in recent months.

Major Drivers of the Hike

• International Crude Oil Prices:
  The surge in global oil prices continues to affect domestic fuel costs as Pakistan relies heavily on imports for energy needs.
• Currency Depreciation:
  The weakening of the Pakistani rupee against the US dollar has increased the import bill for petroleum products, intensifying the price pressure.
• Regulatory Adjustments:
  The fuel price review mechanism takes into account international oil trends and exchange rate fluctuations, leading to periodic revisions every 15 days.

Expected Price Comparison

Economic Impact

• Public Transport Costs:
  Transporters are expected to increase fares, directly affecting commuters and intercity travel expenses.
• Goods and Services:
  Higher diesel prices will raise logistics costs, pushing up prices of daily-use items including food and household essentials.
• Household Budgets:
  Middle- and low-income families will experience greater strain on monthly budgets due to rising fuel expenditures.

Government Leverage and Next Steps

• Price Control Measures:
  The government retains discretion to reduce the impact by adjusting taxes or petroleum levies but has yet to confirm any such intervention.
• Notification Timeline:
  Final prices will be announced on July 15 and will remain effective for the subsequent 15-day cycle.
• Public Advisory:
  Citizens are advised to refuel in advance and plan their travel as fuel outlets may see a rush before the price increase takes effect.

Final Takeaway

The anticipated hike in petrol and diesel prices in mid-July will significantly affect transportation, commerce, and household expenses across Pakistan. As fuel remains a key inflationary trigger, the upcoming increase is likely to influence broader economic indicators and consumer behavior nationwide.