ISLAMABAD: The federal government is expected to increase petrol and diesel prices as rising international crude oil rates begin to affect Pakistan’s domestic fuel market.
According to media reports, the price of high-speed diesel could rise by as much as Rs40 per litre, while petrol may become up to Rs10 per litre more expensive under the next petroleum price review expected to take effect from July 18.
The possible increase comes amid renewed tensions between Iran and the United States, which have pushed crude oil prices higher in the international market.
The government has not yet announced the final rates, and the reported increases remain estimates until an official notification is issued.
Government May Reduce Petroleum Levy
Reports suggest that the government is considering reducing the petroleum levy to limit the impact of rising international oil prices on consumers.
Any adjustment in the levy could reduce the size of the increase passed on to the public. However, no final decision had been announced at the time of filing.
A sharp increase in diesel prices could raise transportation, agricultural and industrial costs, while higher petrol prices would directly affect motorists and daily commuters.
Action Ordered Against Fuel Hoarding
Separately, the government has decided to take strict action against individuals and businesses involved in creating artificial shortages of petroleum products.
The National Committee on Monitoring and Coordination has taken notice of alleged hoarding and directed the Oil and Gas Regulatory Authority to initiate immediate legal action against those withholding fuel supplies.
Authorities have also been instructed to ensure the uninterrupted availability of petroleum products in the market to prevent further difficulties for consumers.
The move comes amid concerns that some dealers may restrict supplies ahead of the expected price increase.
Economic analysts say fluctuations in global oil prices remain a major challenge for energy-importing countries such as Pakistan.
They have also called for long-term measures, including greater investment in alternative energy sources and policies aimed at reducing the economy’s exposure to international oil market shocks.
Also Read: Lahore Petrol Shortage: Pakistan Left With 15 Days of Fuel Stocks
Today's E-Paper