Pakistan is gearing up for a significant increase in petrol prices after months of stability, and citizens are bracing themselves for the impact. Reports suggest that the price of petrol is set to rise by Rs. 9.50, reaching a new rate of Rs. 289.25 from the previous Rs. 279.75. Meanwhile, diesel prices are also expected to see a jump of Rs. 0.86, reaching Rs. 285.56 from the old rate of Rs. 287.33 for the next fortnight.
The primary reason behind this anticipated surge in petrol prices is linked to recommendations from the International Monetary Fund (IMF). The IMF has suggested reintroducing an 18% general sales tax (GST) on petrol as a condition for releasing the final tranche of its bailout package. Additionally, there are reports indicating that the government plans to increase the petroleum levy from Rs. 60 to Rs. 100. This levy has seen several adjustments in recent years, notably increasing during the fiscal year 2023.
Initially set at Rs. 20 per liter in July 2022, the petroleum levy on petrol was subsequently raised to Rs. 50 per liter in November 2022, and further escalated to Rs. 60 per liter until September 2023. Currently, the government imposes a development levy of Rs. 60 per liter on both petrol and diesel, the maximum limit under the law. Factors such as the requirements of Pakistan State Oil, taxes, and global oil prices are considered in determining these prices.
At present, the government levies approximately Rs. 82 per liter tax on both petrol and diesel. While there is no General Sales Tax (GST) applied to all petroleum products, the government collects a petroleum levy of Rs. 60 per liter on both products.
As Pakistan braces for this expected surge in petrol prices, citizens are encouraged to share their thoughts on the matter in the comments section below.
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