The PML-N-led coalition government commenced the new fiscal year (2024-25) with a rise in petrol and high-speed diesel prices by Rs7.45 and Rs9.56 per litre, respectively, for the upcoming fortnight.
In a late-night announcement, the Ministry of Finance noted that petroleum product prices have been on an upward trajectory in the international market over the past two weeks. The Oil and Gas Regulatory Authority (Ogra) determined consumer prices based on global market fluctuations, with no changes to tax and duty rates on petroleum products.
The new ex-depot price for petrol from July 1 to 15 will be Rs265.61 per litre, up 2.9% from Rs258.16 in the previous fortnight (an increase of Rs7.45 per litre). Retail prices are expected to exceed Rs266 per litre. Petrol is predominantly used in private vehicles, rickshaws, and motorcycles, significantly impacting the budgets of middle and lower-middle-class households.
Conversely, the new ex-depot price for high-speed diesel (HSD) is set at Rs277.45 per litre, marking a 3.6% increase (Rs9.56) from Rs267.89 in the preceding fortnight. HSD is crucial in heavy transport, trains, agricultural vehicles like trucks, buses, tractors, and irrigation pumps, contributing notably to food prices. This hike correlates with the government’s estimation of a 13.5% inflation rate in June, up from 11.8% in May.
Earlier on the same day, the finance minister assured that the petroleum levy would remain unchanged, despite the budget raising its ceiling to Rs70 per litre from Rs60, providing flexibility for future adjustments.
Looking ahead, the government aims to collect Rs1.28 trillion from petroleum products in the upcoming fiscal year, up significantly from the estimated Rs960 billion this year, reflecting an increase of nearly Rs91 billion over the Rs869 billion budget target.
Officials attribute recent price increases to international market trends, with petrol and HSD costs rising by about $4.4 and $5.5 per barrel, respectively, over the last fortnight. Meanwhile, the rupee has depreciated by approximately 17 paise against the dollar.
Since May 1, both petrol and HSD prices have been declining due to a downturn in global markets. By April 30, petrol prices had dropped nearly Rs35 to approximately Rs259 per litre, while HSD prices fell about Rs22 to Rs268 per litre in the latter half of April.
