The latest update from the government has led to a change in the petrol prices in Pakistan. With this adjustment, the price of petrol has risen to Rs. 293.94 per liter from the previous Rs. 289.41. Similarly, the price of diesel now stands at Rs. 290.38, up from the previous Rs. 282.84 per liter. These new prices will come into effect on April 16, 2024 and will remain in place for the next two weeks.
Recent reports had indicated a possible increase in fuel prices due to global market fluctuations and tensions between Iran and Israel. Despite some improvements in exchange rates and import premiums, prices continue to rise. Prior to this latest change, petrol and diesel prices had increased by $4 and $4.50 per barrel respectively in the previous two weeks.
IMF & Petrol Price in Pakistan
Additionally, the International Monetary Fund (IMF) has recommended the reintroduction of an 18% general sales tax (GST) on petrol as a condition for the final installment of their bailout package. This has raised concerns within the country.
There are also indications that the government is considering raising the petroleum levy from Rs. 60 to Rs. 100. The Petroleum Development Levy has undergone several adjustments in recent years, with significant increases in the fiscal year 2023. The levy was initially set at Rs. 20 per liter in July 2022, then raised to Rs. 50 per liter in November 2022, and further increased to Rs. 60 per liter by September 2023.
Currently, the government imposes a development levy of Rs. 60 per liter on both petrol and diesel, the maximum limit. However, this could change based on IMF conditions for new loan installments. The situation, both internationally and nationally, is not favorable for Pakistan regarding petrol prices.
What are your thoughts on the revised petrol prices in Pakistan? Do you believe the government made the right decision? Share your opinions in the comments below.
