Petrol and Diesel Prices Expected to Rise from November 1
Petrol and high-speed diesel (HSD) prices in Pakistan are expected to rise by up to 78 paisa per litre starting November 1st. This price hike is anticipated ahead of the official review of petroleum product prices scheduled for October 30. The adjustment reflects both international price trends and domestic tax rates, which contribute significantly to the overall cost of fuel.
Pakistan imposes one of the highest tax rates on petroleum products in South Asia. A combined total of Rs90 per litre is applied through various taxes, duties, and a petroleum levy (PL), adding a substantial burden to the retail price of fuel for consumers. This high taxation level has a direct impact on fuel affordability, affecting both individual consumers and businesses across the country.
The average global price of petrol has recently decreased to $76 per barrel, down from $77.5, while HSD has fallen to $84 per barrel from $86.5. Over the past 15 days, petrol and HSD prices have dropped by around $1.5 and $2.5 per barrel, respectively. This decline in global oil prices is largely driven by a decrease in demand, as more countries shift towards electronic vehicles, reducing traditional fuel consumption.
Following the review, the ex-depot price of petrol is projected to increase slightly from Rs247.03 to Rs247.81 per litre, and HSD may see a rise from Rs251.29 to Rs251.55 per litre. Conversely, some relief is expected in the prices of kerosene oil and light diesel oil (LDO). The price of kerosene may decrease by Rs1.42 per litre, lowering it from Rs163.02 to Rs161.60 per litre. Similarly, LDO is set to drop by Rs3.32 per litre, moving from Rs150 to Rs146.80 per litre starting November 1.
This adjustment in fuel prices reflects the interplay between international oil trends and Pakistan’s domestic tax policies, impacting both consumers and the broader economy as fuel costs fluctuate in the coming month.
