New Petrol Price Projection Petrol Price in Pakistan Expected to Rise by Rs. 8/L
Following a recent increase of Rs. 9.66 per liter, petrol prices in Pakistan are poised to surge further by Rs. 7-8 per liter. This surge will result in a new rate of Rs. 297.42 per liter, up from the previous price of Rs. 289.41 per liter.
Diesel Price Adjustment
Possible Increase of Rs. 1-2/L
In tandem with the petrol hike, diesel prices may also experience an uptick of Rs. 1-2 per liter, bringing it to Rs. 284.24 per liter from the previous rate of Rs. 282.24 per liter. The recent revision offered relief to diesel users with a reduction of Rs. 3.32 per liter.
Factors Influencing Price Movement
The impending price surge is not primarily linked to the International Monetary Fund (IMF) recommendation to reintroduce an 18% general sales tax (GST) on petrol. However, factors such as prolonged currency devaluation and geopolitical tensions in the Middle East, particularly concerning Iran and Israel, are contributing to global oil price fluctuations.
Impact of GST & Petroleum Levy
Reports suggest a potential increase in the petroleum levy from Rs. 60 to Rs. 100. Over recent years, the Petroleum Development Levy has undergone several adjustments, notably escalating during the fiscal year 2023.
Initially set at Rs. 20 per liter in July 2022, the petroleum levy rose to Rs. 50 per liter in November 2022, and further climbed to Rs. 60 per liter until September 2023. Presently, the government levies a development fee of Rs. 60 per liter on both petrol and diesel, the maximum allowed by law.
Government Considerations
In determining these prices, the government takes into account factors such as Pakistan State Oil’s requirements, taxes, and global oil prices. However, the situation remains dynamic, with the potential for further changes depending on various economic and geopolitical factors.
