Pakistan raises petroleum prices amid global oil market pressures
Petrol rises by PKR 8.36, diesel by PKR 10.39 in latest fuel price hike
Business Desk
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Nukta
The Pakistan government has increased prices of petroleum products for the second consecutive fortnight, citing elevated international crude oil prices following heightened geopolitical tensions in the Middle East.
The price of petrol has been raised by PKR 8.36 to PKR 266.79 per liter and diesel by PKR 10.39 to PKR 272.98 per liter.
The decision follows a spike in global crude oil prices following the Israel-Iran war, which pushed benchmark Brent crude to a five-month high of around $77 per barrel. Though prices have since moderated slightly, they remained elevated through most of the fortnight.
Analysts predict that inflation for June, data for which will be released today, may range between 3% to 4%, driven by rising fuel and gas prices.
The government has set a Petroleum Development Levy (PDL) target of PKR 1.468 trillion for fiscal year 2025-26, a 26% increase over the revised FY25 target.
PDL is now a critical non-tax revenue stream, especially amid Pakistan’s ongoing commitments under the IMF program, as authorities strive to bridge the fiscal gap caused by underperformance in tax revenue.
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