ISLAMABAD: Petrol prices in Pakistan are expected to rise from July 1 after four consecutive reductions, sources said on Thursday.

They indicate that petrol prices may increase by Rs7 per litre and high-speed diesel (HSD) by Rs8 per litre due to higher international market rates.

In the past two weeks, the international prices for petrol and HSD have gone up by $4.4 and $5.5 per barrel, respectively.

This anticipated hike in petrol prices could lead to further domestic price increases, especially if the government raises the Petroleum Development Levy (PDL) from the current Rs60 per litre. Previously, Pakistan had reduced petrol and HSD prices due to a decline in the international market.

Since May 1, petrol prices have decreased by about Rs35 per litre, from around Rs294 on April 30 to approximately Rs259. Similarly, HSD prices have dropped by about Rs22 per litre, from over Rs290 in mid-April to Rs268.

However, the Finance Bill 2024 has raised the PDL limit to Rs80 per litre. On June 13, Finance Minister Muhammad Aurangzeb announced that the PDL would be gradually increased based on pricing trends.