Federal Minister for Petroleum Ali Pervaiz Malik has said that petrol prices in Pakistan are lower than those in Bangladesh, Sri Lanka, and Turkiye, while remaining broadly comparable to fuel prices in India.
The remarks were made during a meeting of the committee formed by the prime minister to review reforms in the country’s petroleum pricing mechanism. The session focused on evaluating fuel pricing policies in light of changing global oil market conditions.
KPMG Study Cited
Referring to a study conducted by KPMG, the minister stated that Pakistan continues to maintain relatively lower petrol prices than several countries in the region despite recent increases in domestic fuel rates.
Government Plans Refinery Policy Reforms
The petroleum minister said the government has proposed amendments to the Refinery Policy to encourage higher domestic diesel production and reduce reliance on imported fuel.
The proposed reforms aim to strengthen Pakistan’s energy security while supporting local refining capacity.
OGRA May Publish Daily Pricing Data
During the meeting, the committee recommended that the Oil and Gas Regulatory Authority (OGRA) publish daily Platts pricing data on its official website.
The move is intended to improve transparency by allowing the public to access the international benchmark used in determining domestic fuel prices.
Petrol and Diesel Prices Increased
Last week, the government announced a fresh increase in petroleum prices:
- Petrol: Increased by Rs. 13.18 per litre to Rs. 310.71 per litre.
- High-Speed Diesel (HSD): Increased by Rs. 13.80 per litre to Rs. 323.30 per litre.
Fuel Prices Rose Sharply Earlier This Year
Fuel prices experienced a significant surge earlier this year following geopolitical tensions linked to the US-Iran conflict.
During that period:
- High-Speed Diesel rose from Rs. 281 per litre to a peak of Rs. 520.35 per litre.
- Petrol increased from Rs. 266 per litre to Rs. 458.41 per litre before prices later declined.
Taxes and Levies on Petroleum Products
Under commitments made with the International Monetary Fund (IMF), the government increased the Climate Support Levy to Rs. 5 per litre from July 1 while adjusting petroleum levy rates.
Currently:
- Diesel carries a petroleum levy of approximately Rs. 80 per litre.
- Petrol carries a petroleum levy of around Rs. 70 per litre, in addition to the Rs. 5 climate support levy.
The government also collects customs duties and other charges, bringing the estimated total tax burden to:
- Around Rs. 101 per litre on High-Speed Diesel.
- Around Rs. 95 per litre on Petrol.
In addition, petroleum levies of approximately Rs. 21 per litre on kerosene and Rs. 16 per litre on light diesel oil remain in effect.
