New Petrol Price: Get ready for another increase in petrol prices after the recent hike of Rs. 9.66 per liter. According to our sources, petrol prices are likely to go up by Rs. 7-8 per liter, reaching a new rate of Rs. 297.42 per liter from the previous price of Rs. 289.41 per liter.
Meanwhile, price of diesel may go up by Rs. 1-2/L taking it to Rs. 284.24/L per liter from the old rate of Rs. 282.24 per liter. In last revision, the government announced a relief for diesel users as its prices wad dropped by Rs. 3.32 per liter.
According to reports, the government hasn't raised the petroleum levy or introduced GST yet, so this rise in prices might happen without these changes. If the government does raise these taxes later on, the situation could worsen, possibly reaching higher petrol prices than ever before in the country's history.
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The upcoming hike is primarily not attributed to the International Monetary Fund (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.
The prolonged devaluation of currency over several years and the tense geopolitical situation in the Middle East, particularly any indications of potential conflict between Iran and Israel, are also impacting oil prices globally.
GST & Petroleum Levy
There have been reports indicating that the government intends to raise the petroleum levy from Rs. 60 to Rs. 100. The Petroleum Development Levy has witnessed various adjustments in recent years, with a notable increase 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.
Right now, the government is charging a development fee of Rs. 60 per liter on both petrol and diesel, which is the highest amount allowed by law. When deciding on these prices, the government considers factors like Pakistan State Oil's needs, taxes, and worldwide oil prices.
