Petrol Price In Pakistan Increased By Rs. 4.53/L

The federal government has announced another revision in the?petrol price in Pakistan. After this fresh jump, the petrol price has reached Rs. 293.94 from previous Rs. 289.41/liter. Meanwhile, the price of diesel has reached to Rs. 290.38 from last price of Rs. 282.84/liter. The new prices will be applicable from April 16, 2024 for the next fortnight.?

Earlier media reports suggested fuel prices in the country would rise due to an increase in the global market and the recent conflict between Iran and Israel. 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.?

IMF & Petrol Price in Pakistan?

Furthermore, the International Monetary Fund’s (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 constantly alarms the country.?

Also, there are indications 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. However, it can be increased under the new conditions of the IMF for the release of new loan installments. Both international and national circumstances are not very positive for Pakistan as far as petrol price is concerned.?

What is your take on the revised petrol price in Pakistan? Do you think the government made the right decision? Please tell us in the comments section.?