Petrol prices in Pakistan are expected to rise from March 1, bringing potential challenges for consumers. According to industry sources, petrol could see an increase of Rs. 4 to Rs. 4.50 per litre, while high-speed diesel (HSD) may experience a slight reduction.
The final price adjustments will depend on global oil prices and the exchange rate, with official announcements expected on February 28.
Currently, petrol is a key fuel for motorcycles, cars, and small transport, making any price increase a concern for middle-class and lower-income families. Diesel, on the other hand, plays a vital role in heavy transport, agriculture, and railway operations, meaning any price fluctuation could impact the overall economy, including food and goods prices.
Taxes on fuel remain a major part of the final price. The government collects around Rs. 76 per litre on both petrol and diesel, even though the general sales tax (GST) remains at zero.
These taxes include a petroleum development levy (PDL) and customs duties, while oil companies and dealers also add their margins. Additionally, luxury fuels like high-octane petrol and light diesel come with a Rs. 50 per litre levy, making them even more expensive.
Petrol and diesel are among the top revenue sources for the government, with monthly sales reaching 700,000 to 800,000 tonnes. In contrast, kerosene, mainly used in rural areas, has lower demand at around 10,000 tonnes per month but is often sold at inflated market prices.
As March approaches, Pakistani consumers await the final pricing decision, hoping for minimal increases to ease the financial strain on households and businesses.
