The petrol price in Pakistan is expected to go up for the next fortnight. According to media reports, the federal government is likely to announce a hike in prices of petrol and diesel, set to take effect from December 1, to 15. The petrol price is expected to increase by Rs. 3.15/liter, diesel by Rs. 3.20/liter and kerosene oil by Rs. 4/liter.
The primary reason behind this potential increase is the fluctuation in the global crude oil prices. The petroleum division will make the final decision tomorrow. The reports stated that the Ministry of Petroleum is preparing recommendations for the Ministry of Finance and the new rates will be announced after consultation between Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb.
Current Petrol Price in Pakistan
In the previous review, the federal government had increased the petrol price in Pakistan. According to a notification by the Finance Ministry, the new price of petrol was Rs. 248.38/liter compared to the old rate of Rs. 247.03/liter. Meanwhile, the diesel price was inched up by Rs. 3.85/liter, taking it to Rs. 255.14/liter from Rs. 251.29/liter.
Earlier this month, the sources also reported that IMF had proposed to impose 18% general sales tax (GST) on petroleum products and an increase in Petroleum Development Levy (PDL) from current Rs. 60 to the new Rs. 70 per liter, however, no official announcement from the government has so far been made in this regard. It is important to mention that there is no GST on fuel prices currently.
The prices of petroleum goods are directly linked to the rate of inflation in Pakistan as the rates of daily commodities change with them. In case of a reduction, there is a relief and if prices go up, the inflation rate also sees an upward trend, burdening the masses.
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