Pakistan’s petrol price rose by nearly PKR 30 per liter and high-speed diesel by more than PKR 25 in the week to September 12, as higher international petroleum prices fed through the country’s seven-day pricing mechanism, according to petroleum price publications.
What is the petrol price in Pakistan today?
The latest published rate puts petrol at PKR 375.82 per liter and high-speed diesel at PKR 403.32. Compared with September 5, petrol is up PKR 29.95 and diesel PKR 25.27. The weekly increase reflects higher international petroleum benchmarks rather than higher domestic levies or significant rupee depreciation.
Petrol rose from PKR 345.87 per liter on September 5 to PKR 375.82 on September 12. HSD, widely used across Pakistan’s transport, agriculture and industrial sectors, increased from PKR 378.05 to PKR 403.32 per liter.
For petrol, the Platts Arab Gulf mean average increased to USD 122.81 per barrel from USD 111.50, while the premium including freight rose to USD 16.28 from USD 11.79.
The combined petrol cost and freight consequently increased to USD 139.09 per barrel from USD 123.28. The higher international cost pushed petrol’s Karachi Port cost to PKR 242.79 per liter from PKR 215.95.
Its ex-refinery/import price subsequently climbed to PKR 265.36 per liter from PKR 235.42.
Why did petrol and diesel prices rise?
Higher international petroleum prices were the main driver of the latest increase because those costs are incorporated into Pakistan’s domestic fuel pricing formula.
High-speed diesel faced a similar increase in international costs. The Dubai crude Platts Arab Gulf mean average rose to USD 112.34 per barrel from USD 97.86, while the resulting cost and freight increased to USD 160.73 per barrel from USD 146.25.
That pushed HSD’s Karachi Port cost to PKR 280.77 per liter from PKR 255.50. Its ex-refinery/import price increased to PKR 296.45 per liter from PKR 271.18.
The increases in both fuels therefore followed a sharp rise in the international petroleum benchmarks used in the domestic pricing calculation.
Did government levies or the rupee cause the increase?
Government charges on petrol and HSD did not increase during the week.
The petroleum levy remained unchanged at PKR 80 per liter for both products. The Climate Support Levy also stayed at PKR 5 per liter, while sales tax remained zero under the latest pricing publications.
The unchanged charges indicate that higher government levies were not responsible for the latest rise in the petrol price in Pakistan.
The exchange rate used in the pricing formula also changed only marginally. The State Bank of Pakistan’s average exchange rate moved to PKR 277.52 per U.S. dollar from PKR 277.61 for both petrol and HSD pricing.
That limited movement suggests the sharp increase in international petroleum prices, rather than rupee depreciation, was the main driver of the latest domestic fuel adjustment.
How does Pakistan’s seven-day fuel pricing mechanism work?
Pakistan’s fuel pricing mechanism passes the impact of changes in daily international petroleum prices through to domestic prices over seven working days, according to the latest price publication.
The recent rise in international petroleum benchmarks has therefore translated into a substantial increase in domestic petrol and diesel prices under the mechanism.
The latest adjustment takes petrol and HSD to their highest levels in the latest pricing period, increasing fuel costs for motorists as well as transport, agriculture and other fuel-intensive sectors.
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