Prices Remain Well Below April 3 Peaks of Rs458.41 for Petrol and Rs520.35 for Diesel but Climb Again as IMF Doubles Climate Levy and Petroleum Levies Remain Above Rs70 Per Litre
According to Dawn News, The government on Friday raised the price of petrol by Rs13.18 per litre and that of high-speed diesel by Rs13.80, with the Petroleum Division saying the new prices would be effective from July 11.
Following the increase, the price of petrol stands at Rs310.71 per litre and that of high-speed diesel at Rs323.30.
The diesel price had peaked at Rs520.35 on April 3, having risen from Rs281 per litre after the US-Iran war broke out on February 28. Similarly, petrol had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes. Changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.
Under IMF conditions, the government doubled the climate support levy to Rs5 per litre with effect from July 1, while reducing the petroleum levy. The petroleum levy on diesel currently stands at about Rs80 per litre, while on petrol it stands at about Rs70 per litre. Total taxes on HSD amount to about Rs101 per litre including customs duty, and about Rs95 per litre on petrol.
Pakistan’s fuel prices remain hostage to the dual pressure of the US-Iran war’s impact on crude markets and an IMF programme that demands petroleum levies stay high. The middle and lower-middle class pay the difference at the pump, every fortnight.
Check out our previous coverage of Pakistan’s economy and energy sector on The Trusted Times.
