After a period of time, Pakistan is set to experience a significant increase in petrol prices in an upcoming revision, causing concern among citizens. According to reports, the price of petrol is expected to rise by Rs. 9.50, reaching a new rate of Rs. 289.25 compared to the previous Rs. 279.75.
At the same time, diesel prices are predicted to increase by Rs. 0.86, reaching Rs. 285.56 from the previous rate of Rs. 287.33 for the next two weeks.
The increase in petrol prices is mainly due to recommendations from the International Monetary Fund (IMF). The IMF suggested reintroducing an 18% general sales tax (GST) on petrol as a condition for releasing the final part of Pakistan's bailout package. Additionally, the government plans to raise the petroleum levy from Rs. 60 to Rs. 100.
The Petroleum Development Levy has seen several changes recently. Initially set at Rs. 20 per liter in July 2022, it rose to Rs. 50 per liter in November 2022, then further increased to Rs. 60 per liter until September 2023. Currently, both petrol and diesel carry a development levy of Rs. 60 per liter, which is the maximum allowed by law.
The government considers factors like Pakistan State Oil's needs, taxes, and global oil prices when setting these rates. Currently, there's no General Sales Tax (GST) on petroleum products, but a petroleum levy of Rs. 60 per liter is collected on both petrol and diesel.
What are your thoughts on the upcoming petrol price surge? Feel free to share in the comments section below.
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