KARACHI: Once again, there are expectations for a rise in petroleum product prices within Pakistan.
According to media reports, there is a possibility of an increase in the price of petrol by Rs9.5 per liter from April 1st, 2024 . If this adjustment occurs, petrol prices could climb from Rs279.75 to Rs289.25.
Reports indicate the government’s intention to raise the petroleum levy from Rs60 to Rs100. This levy has undergone several modifications recently, notably seeing a significant surge in FY-2023.
Furthermore, there’s contemplation within the federal government regarding either implementing a General Sales Tax (GST) on petroleum or raising the existing levy to meet IMF demands, aiming to reinstate the 18% GST on petrol.
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Petrol, High Speed Diesel (HSD) Prices in Pakistan Today:
| Type | Price (per litre) |
|---|---|
| Petrol | Rs.279.75 |
| High Speed Diesel (HSD) | Rs.285.56 |
Proposals suggest an increase in the petroleum levy from Rs60 to Rs100 per liter in the upcoming fiscal year’s budget.
Currently, petrol and diesel bear a levy of Rs60 per liter, generating an estimated annual revenue of Rs950 billion. Since March 2022, petroleum products have been exempt from GST.
In the proposed budget, GST restoration to 18% was suggested.
Sources reveal the International Monetary Fund’s insistence on reinstating the standard GST rate.
On March 15, the government maintained petrol prices while reducing high-speed diesel rates by Rs1.77 per liter.
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According to the official notification, petrol will stay at Rs279.75 per liter, while high-speed diesel will decrease to Rs285.56 per liter, down by Rs1.77.
This decision comes amidst global oil price fluctuations and aims to stabilize domestic fuel rates. The Ministry of Finance routinely evaluates petroleum product prices to synchronize them with global market shifts while considering consumer and economic impacts.
Though not explicitly stated in the notification, Ministry of Finance sources suggest a reduction of Rs2.12 per liter in light diesel oil and Rs1.35 per liter in kerosene prices.
However, the final decision on the prices of petrol and diesel will be made by the Ministry of Finance in light of the OGRA summary on the night of March 31, 2024.
(Islamabad51_Newsdesk)
