Petrol Price May Rise Again in Pakistan From Nov 16
Pakistan is set for another hike in petroleum product prices, a trend that will drive further spikes in economic challenges currently being faced by the nation.
Read More: FBR to Lower Sales Tax on Petroleum Products
Petroleum Development Levy
The prime reason behind the increase in price hike is the proposal by IMF for imposing 18% general sales tax (GST) on the petroleum products and raising Petroleum Development Levy (PDL) from previous Rs. 60 to the new Rs. 70 per liter. Previously in our blogs, we had informed you that government will charge GST and PDL on fuel prices.
Expected Hike: Petrol Price May Rise Again in Pakistan From Nov 16
Accordingly, as reliable sources suggest, it is going to add a probable up-to Rs. 6 per liter increase in the price of petrol, diesel, kerosene oil, and light diesel oil from November 16, 2024; this would cascade an increasing effect on living costs of already burdened consumers.
The petroleum, high-speed diesel prices are likely to rise by Rs. 2.58 and Rs. 5.91 per liter respectively and kerosine oil is likely to increase by Rs. 5.54 a liter.
Current Petrol Price
Pakistan On 31st October, 2024, the price of petrol has crossed Rs 248.38 per liter and HSD at Rs 255.14 per liter.
Such prices have been recent wherein an increased charge has been imposed so that these are able to move in tandem with the global oil market as also with the fiscal goals of the government. Currently, petroleum products have no GST burden, but a PDL of Rs 60 per liter is recovered on petroleum products.
Role of OGRA and Govt’s Decision: Petrol Price May Rise Again in Pakistan From Nov 16
The revised price calculations submitted by oil companies to the Oil and Gas Regulatory Authority will be forwarded to the government on November 15, 2024.
It is a call of the Prime Minister’s office in the overall scenario, how much to hike the price of petroleum.
Almost the entire price of petrol and diesel in Pakistan has taxes with a fixed amount of Rs. 76 per liter.
When the base price goes up even more, it will save less pocket money for consumers, mainly who use them for transport and other urgent needs.
Global Trends
Global oil prices took a mixed trend lately. While Brent crude futures declined slightly, US West Texas Intermediate WTI marginally edged up. The overall trend still hints at a moderate positive trajectory that could further add to domestic price rises.
Among the many problems the government has to undertake in order to balance the economy, one of the serious concerns is the hike in petrol price, which is soon going to be implemented.
It has to go about solving the problems of the people as well. It remains to be seen whether the government is going to reduce the impact of this increase and lessen the burden on the suffering people.
Petrol Price May Rise Again in Pakistan From Nov 16
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