Pakistani motorists are bracing for a substantial petrol-price hike starting July 2025. According to a May 30 notice, this follows modest June reductions of Rs 0.60–1/L, offset by pending fiscal measures .
The key driver: under the Budget 2025–26, federal authorities plan to raise the Petroleum Development Levy (PDL) from ~Rs 78 to Rs 100 per litre, alongside an additional *carbon levy (approx. Rs 5/L)* . Non-cash (card) users may see slight rebates, but petrol prices overall are expected to climb.
OGRA projections add ₹3–5/L due to new sales tax and margin adjustments to support OMCs and refineries—the total burden may exceed Rs 4/L . IMF-recommended levies on cash transactions add about Rs 2/L further .
Result? Petrol prices could approach or surpass Rs 300/L by mid‑2025, sparking ripple effects: transportation, food, utilities—all likely to see cost increases. This could fuel broader inflation and public dissatisfaction .
In summary, while June offered modest relief, the combined impact of Budget levies, IMF conditions, and tax adjustments means a significant petrol‑price hike is imminent—with profound implications for consumers and the wider economy. Stakeholders should monitor announcements closely and prepare for increased financial strain.
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