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Price Hike Amid Rising Global Oil Prices
The federal government increased the petrol price by Rs5.77 per litre and high-speed diesel (HSD) by Rs6.47 per litre for the next 24 hours effective August 18. Under the revised rates, petrol will be available at Rs331.2 per litre, while HSD will be priced at Rs390.45 per litre .
The government charges Rs114 per litre in taxes on petrol and Rs100 per litre in taxes and duties on HSD , with the new rates reflecting a direct pass-through of rising global oil prices.
Global Oil Prices and Regional Tensions
Brent crude futures rose 0.5% to over $84 a barrel on Monday, with West Texas Intermediate climbing above $80 a barrel, following a 15% rally over the past two weeks to near multi-month highs . Tensions in the Middle East have fueled worries about potential supply disruptions in a region that accounts for about one-third of global supply .
The Government of Pakistan (GoP) has approved six major tax and tariff changes in the current fiscal year, including a federal excise duty increase and a 5% customs duty on high-speed diesel . It also raised the petroleum development levy (PDL) to Rs110 per litre on petrol and Rs96 per litre on HSD .
Daily Pricing Mechanism Continues
The Oil and Gas Regulatory Authority (Ogra) continues to publish daily petroleum prices based on a seven-day average of international market prices. The regulator is authorised to announce daily prices without prior government approval, with prices notified on Fridays remaining unchanged on Saturdays and Sundays .
The daily pricing framework, approved by the federal cabinet, is intended to improve transparency and allow international price changes to be passed on to consumers more quickly. The shift follows volatility in global oil rates amid the Middle East conflict .
