After the trade deficit of the country increased to 43% in the first quarter of the current fiscal year, the federal government has decided to increase Petroleum Levy (PL) to Rs. 50/liter, setting a new high octane price in Pakistan from November 16, 2022. The current PL on RON 95 and 97 is Rs. 30/liter.
The decision to increase the levy was taken at the cabinet’s meeting of the Economic Coordination Committee (ECC). The committee also allowed up to a $15 barrel premium on high-speed diesel to private oil marketing for November and December.
According to details, Federal Finance Minster Ishaq Dar presided over the meeting, where the Federal Board of Revenue (FBR) tabled a summary on imposing 17% sales tax on high-octane. It was conveyed to the minister that the sales tax on petroleum goods was reduced to zero in February 2022. This move put pressure on FBR’s efforts to achieve its fiscal targets.
New High Octane Price In Pakistan
Therefore, after deliberation, ECC allowed an increase in the PL of high-octane instead of increasing sales tax. The finance minister said that the imposition of a sales tax would increase the high-octane price by Rs. 45/liter; hence, he didn’t increase the tax.
The government further argued that high-quality petrol is a “luxury good being consumed by wealthy consumers in their expensive vehicles.” This decision will push the price of high-octane to Rs. 290/liter.
No Increase
On October 31, Ishaq Dar announced that the prices of Petroleum products would remain unchanged for the next fortnight in Pakistan.
In a press conference, he stated, “The government has decided that the prices of petroleum products at this moment, from October 16, will be maintained for the next 15 days. There will be no change in them”.
Current Petrol Price in Pakistan
On September 30, newly appointed Finance Minister Ishaq Dar announced a massive slash of Rs. 12.63 in petrol prices in Pakistan.
Petrol now costs Rs. 224.80/liter from the previous rate of Rs. 237.43/liter.
Meanwhile, the price of HSD was dropped by Rs. 12.13/liter, after which the new price is Rs. 235.30/liter.
Similarly, LDO and kerosene oil prices decreased by Rs. 10.19 and Rs. 10.78, respectively. Kerosene oil now costs Rs. 191.83/liter, while the new price of light-speed diesel is Rs. 186.50/liter.
What do you think about new high octane price in Pakistan? Please share your thoughts in the comments section.
What about the Euro 5 fuel ? It is available in the whole country yet or not ?