A massive increase in fuel prices is expected from July 1 following a 50 percent hike in fixed gas charges for domestic consumers.

 

The petrol price is reportedly to increase by Rs11 per litre, while the price of diesel is also expected to hike by 15 rupees per litre for the upcoming fortnight.

 

Citing a fuel pricing outlook compiled by Arif Habib Limited (AHL), reports claimed that the average international price of Gas Oil (diesel) rose by 10.3% to $87.18 per barrel between June 16 and June 30, compared to $79.05 in the first half of June. 

 

Similarly, during the same period, Gasoline (petrol) prices rose 5.8% to $78.42 per barrel.

 

This massive increase comes after geopolitical conflict between Israel and Iran earlier in the month. Prices of WTI, Brent, and Arab Light crude rose 5.2%, 6.9%, and 7.0%, respectively, during the second half of June. 

 

Last week, reports citing the Ogra notification claimed that gas fixed charges for domestic consumers in the Protected category have risen to Rs600 from Rs400, while those in the non-protected category have to pay Rs1,500 as opposed to the previous charge of Rs1,000.

 

For non-protected consumers exceeding consumption of 1.5 cubic hectometres (hm³), the price has risen to Rs3,000 from Rs2,000