Following the last fortnight hike, again, the petrol price in Pakistan is likely to increase to another high. And this time, thanks to ongoing escalation in the Middle East.
In a recent update, international media reports have informed a rise in petrol and high-speed diesel prices in the international market which in turn is affecting the consumers worldwide.
Prices of petrol and diesel are expected to surge by approximately Rs. 2.50 and Rs 8.50 per liter, respectively, for the next two weeks. If increased, the new rate of petrol and diesel will be Rs. 291.91 and 290.74 per liter, respectively, from the previous Rs. 289.41 and Rs. 282.24.
Despite a slight improvement in exchange rates and a decrease in import premiums, the upward trend persists. Before the recent escalation, petrol and high-speed diesel prices surged by $4 and $4.50 per barrel, respectively, over the past fortnight.
Petroleum Levy & GST
Other than geopolitical implications, the International Monetary Fund (IMF) recommendation to reintroduce an 18% general sales tax (GST) on petrol as a condition for the release of the final tranche of its bailout package will be another alarming situation taking the fuel prices to new highs.
Furthermore, there are indications from reports that the government plans to increase the petroleum levy from Rs. 60 to Rs. 100. Over the past few years, the Petroleum Development Levy has undergone several adjustments, notably increasing during the fiscal year 2023.
Initially established at Rs. 20 per liter in July 2022, the petroleum levy on petrol was later raised to Rs. 50 per liter in November 2022, and subsequently increased to Rs. 60 per liter until September 2023.
Currently, the government is imposing a development levy of Rs. 60 per liter on both petrol and diesel, which stands as the maximum limit under the law.
What’s your take on the anticipated petrol price hike? Tell us in the comments section.
