Pakistan raises petrol by PKR 5.44, diesel by PKR 31.05:Petrol at PKR 316.15; high-speed diesel at PKR 354.35 per litre, new prices effective from 18 July

The Pakistan government has increased the price of petrol by PKR 5.44 per litre and high-speed diesel by PKR 31.05 per litre. Following the hike, petrol now costs PKR 316.15 per litre, while high-speed diesel is priced at PKR 354.35 per litre. The new prices came into effect on 18 July. The government has also decided to revise petrol and diesel prices daily instead of weekly. Price rise began in February Despite the latest increase, petrol and diesel prices are still below their record highs. On 3 April, diesel reached an all-time high of PKR 520.35 per litre. The sharp rise began after the US-Iran war started on 28 February, when diesel was priced at PKR 281 per litre. Petrol also touched a record high of PKR 458.41 per litre on 3 April, up from PKR 266 per litre in the first week of March. Prices will now be revised every day Petroleum Minister Ali Parvez Malik said that international fuel prices have been changing rapidly because of the US-Iran war. In view of this, the Central Cabinet and the Prime Minister have decided that the Oil and Gas Regulatory Authority (OGRA) will now set fuel prices every day. OGRA will publish the new fuel prices on its website each morning. It will also explain how the final price is calculated, including taxes, dealer margins and other charges before the fuel reaches petrol pumps. Until now, the government had been reviewing fuel prices every week since the beginning of March. PKR 105 per litre is tax; dealers warn of protest The government is collecting heavy taxes on petrol and diesel. At present, around PKR 105 per litre is charged as tax on both fuels. This includes customs duty, petroleum levy, climate support levy and the inland freight equalisation margin. The All Pakistan Dealers Association has rejected the government’s decision to introduce daily fuel pricing. The association says changing prices every day will make stock management and business operations more difficult. Dealers have warned that they could launch a major protest and strike next week. Middle class and transport sector likely to be hit hardest Changes in petrol prices mainly affect the country’s middle and lower-middle-income groups, as petrol is widely used in private vehicles, small cars, auto-rickshaws and two-wheelers. Higher diesel prices could also push up inflation, as diesel is used by heavy commercial vehicles such as trucks and buses, as well as power plants and large generators. Pakistan consumes around 700,000 to 800,000 tonnes of petrol and diesel every month, while the monthly demand for kerosene is only 10,000 tonnes. This makes petrol and diesel the government’s biggest source of fuel-related tax revenue.