Pakistan likely to raise fuel prices by up to PKR 4 per liter

As global oil prices continue to rise, the Pakistani government is likely to increase domestic rates for the upcoming fortnight starting February 1.

The price of petrol is expected to go up by PKR 2.50 per liter while that of diesel is expected to rise by PKR 4 per liter.

A final announcement in this regard will be made Friday night.

The rise is because of an increase of 50 cents per barrel in international petrol prices to $81.70 and almost $2 in international diesel prices to $93.30 a barrel.

During the seven months of the current fiscal year, petrol price has declined by PKR 5 to PKR 261 per liter while diesel price has been down by PKR 21 to PKR 256 per liter.

In the first quarter ended September 30, the government collected petroleum levy amounting to PKR 262 billion, which was around PKR 40 billion higher than in the same quarter last year.

In fiscal year 2023-24 (FY24), total petroleum levy collection amounted to PKR 1,019 billion.

The government plans to collect around PKR 1.28 trillion as petroleum levy in FY25 which is likely to be missed for the current fiscal year until economic activities speed up and demand in the agriculture sector records sharp recovery.