There is a potential for another increase in petrol and diesel prices in Pakistan, with estimates suggesting that petrol could rise by Rs6.60 and high-speed diesel by Rs5.27 per liter starting July 16, for the next 15 days.

According to Business Recorder, this possible price hike is influenced by fluctuations in global market prices, currency adjustments, and government revenue targets.

A proposed petroleum levy and carbon surcharge of Rs78.02 per liter for petrol and Rs77.01 for high-speed diesel has been suggested, along with an Inland Freight Equalization Margin (IFEM) of Rs8.89 for petrol and Rs6.04 for diesel.

Sources indicate that additional burdens of Rs3 per liter for petrol and Rs2 for diesel may arise from exchange rate adjustments. Current estimates also reflect a premium of $9.68 per barrel for petrol and $3.25 per barrel for diesel in the international market.

If implemented, the price of petrol would increase from Rs266.79 to Rs273.39 per liter, while high-speed diesel would rise from Rs272.98 to Rs278.25 per liter.

Conversely, there may be a slight decrease in the prices of kerosene and light diesel oil (LDO), with expected reductions of Rs3.74 (2%) for kerosene and Rs2.23 (1.3%) for LDO.

It is important to note that on July 1, the federal government had already raised petrol and diesel prices significantly due to a surge in the global market and ongoing tensions between Iran and Israel.

Pakistan relies on imports for 85% of its refined petroleum needs, with only 15% coming from crude oil imports.

The Oil and Gas Regulatory Authority (OGRA) is set to submit its recommendations to the Ministry of Finance on July 15, after which an official announcement regarding the new prices is anticipated.