Petrol, diesel prices remain unchanged

The federal government has decided to maintain petroleum prices for the upcoming review period beginning June 27

The federal government has decided to maintain petroleum prices for the upcoming review period beginning June 27, opting not to pass on the benefit of lower international crude oil prices to consumers.

Under the latest pricing decision, petrol will continue to retail at Rs299.50 per litre, while the price of High-Speed Diesel (HSD) will remain unchanged at Rs311.47 per litre.

The move comes at a time when international crude oil prices have eased back to around $70 per barrel, largely returning to levels seen before recent geopolitical tensions in the Gulf region. Despite the decline in global oil markets, domestic fuel prices have been left unchanged, disappointing consumers who were expecting another reduction at the pump.

Industry stakeholders have also voiced concerns over the government’s recent fuel pricing policy. The Oil Companies Advisory Council (OCAC) has strongly criticized the sharp reduction in petroleum prices announced during the previous weekly review, arguing that the sudden adjustment inflicted significant financial losses on the oil sector.

According to the council, the abrupt cut in fuel prices wiped out an estimated Rs104 billion in working capital and shareholder value for oil marketing companies and local refineries. The industry maintains that such rapid price revisions make it difficult for companies to manage inventories and maintain financial stability.

During the previous review, the government had reduced the price of petrol by Rs74 per litre and High-Speed Diesel by Rs67 per litre, one of the largest single reductions in recent years. To accommodate that adjustment, authorities also revised the Petroleum Levy structure.

The levy on petrol was reduced from Rs106.74 per litre to Rs66.25 per litre, while the levy on High-Speed Diesel was increased from Rs53.26 per litre to Rs72.97 per litre. These changes were aimed at balancing revenue requirements while providing temporary relief to consumers.

Despite maintaining current fuel prices, the government continues to depend heavily on petroleum taxation as a key source of revenue. Budget documents for the upcoming fiscal year, beginning July 1, project Rs1.727 trillion in collections through the Petroleum Levy, highlighting the critical role fuel taxes will play in achieving fiscal targets.

Economic analysts note that although lower international crude prices have created room for additional relief, the government’s revenue considerations and fiscal commitments appear to have outweighed the possibility of further reductions in domestic petroleum prices.