The government announced that petrol and diesel prices will rise starting June 16 due to a sharp surge in global oil prices. This increase follows recent missile exchanges between Israel and Iran, which have unsettled oil markets worldwide. The ex-depot price of high-speed diesel (HSD) may increase by about Rs 5 per litre, affecting transport and agriculture sectors.
Currently, petrol costs Rs 252.63 per litre, and HSD is priced at Rs 254.64 per litre at the ex-depot level. The rise in fuel prices is expected to add pressure on inflation, especially in food and transportation. Diesel prices heavily influence the cost of moving goods, which could make everyday items more expensive.
Although petroleum products are exempt from General Sales Tax, the government charges around Rs 94 per litre in various taxes and duties. These include a Petroleum Development Levy (PDL) of over Rs 77 per litre on diesel and Rs 78 on petrol. Customs duties and distributor margins add roughly Rs 33 more per litre to the final price.
In response to the price surge, the federal government has formed a 16-member high-level committee. Led by the finance minister, this group includes officials from petroleum, power, finance, and regulatory bodies. The committee will monitor fuel supply, global price changes, and their impact on Pakistan’s economy.
The committee’s tasks also cover planning to prevent fuel shortages and assessing fiscal risks if the crisis worsens. It will report weekly to the Prime Minister, with its first meeting set for June 15. This proactive step aims to stabilize the domestic fuel market amid rising geopolitical tensions.