Massive petrol price hike in Pakistan

Petrol price Hike News: Pakistan raised petrol and diesel prices to over Rs 100 per litre each, with a massive retail fuel price hike of up to Rs 26 per litre on Friday, according to media reports from India’s neighbouring country. The Dawn newspaper reported that the price of petrol has been increased by Rs 25.58 to Rs 100.10 per litre in Pakistan. The Government of Pakistan attributed the whopping hike in petrol prices to ‘rising international prices’. Pakistan has also raised the prices of high-speed diesel by Rs 21.31 to Rs 101.46 per litre, and that of kerosene by Rs 23.50 to Rs 59.06 per litre. The revised retail fuel prices are effective from Friday (June 26), the reports said.

However, this is not for the first time that retail petrol and diesel prices have breached Rs 100 per litre in Pakistan. Retail fuel was priced well over Rs 100 per litre in the country before coronavirus hit the global economy and the international crude oil prices. Prime Minister Imram Khan’s government cut petrol prices by as much as Rs 42.10 per litre in four steps since March 1, 2020, in line with the dramatic fall in the international crude oil prices.

Now that the crude oil prices have more than doubled since the recent slump, recovering to the pre-pandemic levels, Pakistan has raised retail fuel prices in line with it. The hike in the retail fuel prices in Pakistan involves a doubling of the tax levies, with petrol now selling with a petroleum levy of Rs 30 per litre, as against Rs 15 per litre.

Pakistan revises retail fuel prices every month, based largely on the price of crude oil imported from oil producing nations. Indian fuel retailing companies revise petrol and diesel prices daily, based on crude oil prices, along with other factors. However, unlike Pakistan, Indian government did not pass on the benefit of record low crude oil prices to consumers. Instead, petrol and diesel prices were kept near steady through crude oil price fall, by way of hike in excise duties. Not only that, now that the crude oil prices have recovered, fuel prices in India have started rising even more in India, hitting all-time highs. Petrol and diesel now sell for over Rs 80 per litre in Delhi.