Petrol Prices in Pakistan Set for Significant Drop Starting June 16

Islamabad: The federal government has decided to reduce petrol and high-speed diesel (HSD) prices in response to a decrease in international oil prices.

In the forthcoming fortnightly price review on June 15, petrol is expected to decrease by approximately Rs9 per litre and HSD by Rs5 per litre.

Sources indicate that international market prices for petrol and HSD have dropped by around $3.75 and $2.7 per barrel, respectively, over the past two weeks.

Oil prices eased on Friday as markets assessed the implications of U.S. interest rates remaining higher for a longer period than previously expected. Brent crude futures fell by 42 cents, or 0.5%, to $82.33 a barrel, while West Texas Intermediate (WTI) U.S. crude futures declined by 51 cents, or 0.7%, to $78.11 a barrel.

Hike in Petroleum Levy Proposed

Meanwhile, the PML-N-led federal government has proposed a significant increase in the petroleum levy on various petroleum products. In presenting the federal budget for the fiscal year 2024-25, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb proposed a 33 percent increase in the levy on petrol and diesel.

The proposal also includes a 50 percent increase in the levy on high-octane, light diesel, and ethanol, which, if approved, would result in an Rs50 charge per litre for these fuels.