Petrol prices in Pakistan are projected to increase starting March 1, posing potential challenges for consumers. Industry sources suggest petrol could see a rise of Rs. 4 to Rs. 4.50 per litre, while high-speed diesel (HSD) may experience a slight reduction.

Final price adjustments will be influenced by global oil prices and the exchange rate, with official announcements anticipated on February 28.

Key Points:

• Impact on Consumers: Petrol is crucial for motorcycles, cars, and small transport, making any price hike a concern for middle-class and lower-income families. Diesel plays a vital role in heavy transport, agriculture, and railway operations, impacting the overall economy, including food and goods prices.

• Taxes and Costs: Fuel taxes significantly contribute to the final price. The government collects around Rs. 76 per litre on both petrol and diesel, despite the general sales tax (GST) being zero. These taxes include a petroleum development levy (PDL) and customs duties, with oil companies and dealers adding their margins. Luxury fuels like high-octane petrol and light diesel come with a Rs. 50 per litre levy, making them more expensive.

• Sales and Demand: Petrol and diesel are top revenue sources for the government, with monthly sales reaching 700,000 to 800,000 tonnes. Kerosene, mainly used in rural areas, has lower demand at around 10,000 tonnes per month but is often sold at inflated market prices.

As March approaches, Pakistani consumers are keenly awaiting the final pricing decision, hoping for minimal increases to ease the financial burden on households and businesses.