Petrol Price in Pakistan May Rise Up To Rs. 3.47 Per Liter

Get ready for a potential increase in petrol prices in Pakistan. Experts are predicting a hike in fuel costs that can hit your wallet. But why is it increasing, and how it will affect you as a consumer?

In this blog, you will learn about how to overcome the upcoming financial strain that rising petrol prices can place on you. Wise Wheels Pakistan is here to keep you informed and prepared for the challenge ahead.

Let’s explore it.

Why is the Petrol Price Increasing in Pakistan?

The main reason for the increase in petrol prices is due to sudden increase in global oil prices. Recently, the global market saw an increase in Brent crude oil prices. It is an important factor of how much crude oil costs on an international market.

The sudden prices increased by 1-2$/ barrel due to US sanctions on Russian oil exports. This causes an increase in prices for petrol, diesel and kerosene in Pakistan due to rise in ex-refinery prices.

Experts Predictions about Petrol Price

According to the experts’ reviews and resources, petrol prices can rise to 3.476-PKR/ liter, diesel by 2-2.50-PKR, and kerosene by 4-PKR. This eventually resulted in a rise in the prices so that petrol could cost 256.13-PKR/ liter, diesel could be priced at 260.95-PKR, and kerosene might be priced at 161.66-PKR.

Current Evaluation of Petrol Prices

The current prices of petrol, diesel, and kerosene are to be at 252.66-PKR, 256.13-PKR, and 161.66-PKR/ liter.  The previous increase in the prices was little like 56 paisa for petrol and 2.96-PKR for diesel as announced at the end of December.

The Impact of Government Levies on Petrol Prices

A large part of the petrol prices comes from taxes and government levies. Indeed , taxes contribute about 76-PKR/ liter for both petrol and diesel.

• The tax included in a petroleum development levy is 60-PKR.

• And for customs duty it is 16-PKR.

The last contributing factor is that oil companies and dealers also add their margins around 17-PKR/ liter making the final price even higher. The prices of petrol, diesel, and kerosene may fluctuate, but adding the government’s taxes and margins can make up a large portion of the final cost at the pump.

Who Will be Affected by the Price Hike?

The social bodies that will be affected by the increase in fuel prices are a broad range of consumers. Middle class to lower-income groups who solely rely on private cars or motorbikes for their daily commutes would be affected so much by the increase in prices and cause transportation to become more expensive.

For businesses, everything runs on diesel like for heavy transport, agriculture, and even trains the effects on them would be amplified.

Global Markets and Pakistan’s Economy: The Big Picture

The main reason for the burden of fuel prices in Pakistan is the increase in the import oil prices in global markets. As the prices fluctuate due to geopolitical issues like ( the Ukraine-Russian War), that results in a burden on consumers, especially in a country like Pakistan.

That’s why the government of Pakistan sometimes adjusts fuel prices to maintain the balance in the market and reduce the financial burden on consumers and state’s reserves.

What Should You Do as Consumers?

The best solution for you as a consumer is to use public transport where possible or carpool with others to reduce individual costs. 

The Pakistani automobile market is expanding and gaining popularity due to electric vehicles (EVs): EVs could be the long-term solution for those with this challenging infrastructure.

Conclusion

The fuel price hike is inevitable in Pakistan, but the long term solution lies in developing more sustainable energy alternatives to reduce the cost of imported oil.

Visit Wise Wheels for better insights to stay ahead in the economical market. Choose more sustainable energy alternatives on the go!