On March 14, the upcoming revision of petrol prices in Pakistan is just one day away. Every month, fuel prices are adjusted on the night of the 15th for the following two weeks. Initially, reports suggested a possible decrease of up to Rs. 5 in petrol prices. However, recent updates indicate that petroleum product prices will remain the same for the next 15 days.
The Breakdown
According to official sources, the premium on petrol revenue has risen from $10.45 per barrel to $12.15 per barrel as of February. While the exchange rate and global market fluctuations impact oil prices, diesel revenue remains stable at $6.50 per barrel. As a result, petrol prices may slightly increase by around Rs. 1, while diesel rates could potentially decrease by Rs. 1.
To maintain stable prices, the government can make adjustments in the exchange rate and the International Monetary Fund (IMF) stabilization margin. Similarly, there are no anticipated price changes for kerosene oil and light diesel.
Currently, the government imposes a development levy of Rs. 60 per liter on both petrol and diesel, the maximum allowed by law. Factors such as the requirements of Pakistan State Oil, taxes, and global oil prices are considered when setting these prices. Recent geopolitical tensions and supply issues have led to a nearly 10% increase in oil prices in the first two months of 2024.
At present, the government collects approximately Rs. 82 per liter in taxes on both petrol and diesel. Although there is no General Sales Tax (GST) on petroleum products, a petroleum levy of Rs. 60 per liter is imposed on both.
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