After the recent increase in petrol prices in Pakistan, it is expected to rise even higher due to the escalating tensions in the Middle East.
According to reports from international media, the prices of petrol and high-speed diesel in the global market have gone up, affecting consumers worldwide.
The prices of petrol and diesel are predicted to go up by around Rs. 2.50 and Rs. 8.50 per liter, respectively, over the next two weeks. This would mean a new rate of Rs. 291.91 for petrol and Rs. 290.74 for diesel, compared to the previous rates of Rs. 289.41 and Rs. 282.24.
Despite some positive changes in exchange rates and import premiums, the upward trend in prices continues. Before the recent tensions, petrol and diesel prices had already gone up by $4 and $4.50 per barrel over the last two weeks.
Petroleum Levy & GST
Aside from the geopolitical issues, the IMF’s recommendation to reintroduce an 18% GST on petrol as a condition for the final tranche of their bailout package could lead to even higher fuel prices.
There are reports suggesting that the government is considering raising the petroleum levy from Rs. 60 to Rs. 100. The Petroleum Development Levy has seen several adjustments in recent years, with significant increases projected for the fiscal year 2023.
The initial petroleum levy of Rs. 20 per liter in July 2022 was later raised to Rs. 50 in November 2022, and then increased to Rs. 60 per liter by September 2023.
Currently, the government is enforcing a development levy of Rs. 60 per liter on both petrol and diesel, the maximum limit allowed by law.
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