ISLAMABAD: As inflation squeezes households, the government is preparing to impose a fresh hike in fuel prices from July 1.
Sources in the Petroleum Division say petrol prices may rise by Rs11 per litre, while diesel could jump by Rs15 per litre.
OGRA will send its summary of the proposed fuel hike to the Ministry of Petroleum today. The final decision will rest with the Finance Minister and Prime Minister, with new prices expected to be announced tonight.
Officials blame the expected hike on rising global crude oil prices and the devaluation of the rupee.
However, Arif Habib Limited (AHL) suggests the government may soften the blow. AHL predicts the government could temporarily cut the Petroleum Development Levy (PDL) to reduce the price increase.
If this happens, diesel may go up by only Rs4.5 per litre, and petrol by Rs8 per litre. AHL believes the government will restore the full levy once global prices stabilise.
Previously, the federal government announced a petroleum levy of Rs77 per litre and a carbon levy of Rs5 per litre on furnace oil. It also imposed an additional Rs2.5 per litre on petrol and diesel, effective July 1.
Meanwhile, OGRA has issued a notification for a major increase in gas prices for domestic and other consumers. The new gas rates will also take effect on July 1, 2025.
