Petrol prices in Pakistan are likely to remain high, and masses are unlikely to receive any relief in the form of a price reduction in the next fortnight. According to media reports and industry sources, it is doubtful that the next review of petroleum prices would relieve the consumers, as the global prices of crude and petroleum products have not left any room for the government to reduce prices.
The sources in the government said ex-refinery prices of petrol and diesel were showing a nominal drop for the next 15 days; however, this relief could not be passed to the masses mainly because the government has yet to adjust exchange losses, which are lingering on for a while.
In the last fortnight’s review, the government decided to keep the prices unchanged. The decision was taken by not adjusting the exchange loss. Furthermore, with the need to adjust the exchange loss along with the International Monetary Fund (IMF) demand to generate additional revenue by raising the petroleum levy on diesel, the government remained unable to reduce the prices for the masses.
Currently, the government charges a Rs. 50/liter petroleum levy on petrol and Rs. 12 on diesel. Meanwhile, under the IMF agreement, the government needs to hike the levy on diesel to collect revenue. If the government decided to adjust the exchange loss and raise the levy on diesel to Rs. 50, the diesel price might go up manifold.
The sources believe that the government will increase the levy and adjust exchange losses, leading to a rise in petrol and diesel prices in Pakistan for the next fortnight. Furthermore, the government is withholding the imposition of sales tax to avoid a considerable increase in petroleum products; however, the IMF is pressing the government to go for the imposition.
So, we can expect that petroleum prices will either remain the same or see a hike.
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.
