Petrol Price Likely To Go Up by Rs 10 Per Liter
Staff Report
The federal government is contemplating a significant raise in petrol prices by up to Rs 10 per liter, effective from April 1, 2024, further worsening financial burdens on the general public.
The recent surge in petrol prices is attributed to an increase in the premium from $12.15 per barrel to $13.507 per barrel, marking a $1.45 per barrel increment.
If the government passes the full impact on the general masses ahead of Eidul Aza, the price of petrol would surpass the high-speed diesel price (HSD), rising from Rs 279.75 to Rs 289.75 per liter.
Additionally, the Inland Freight Equalization Margin (IFEM) on petrol is expected to be Rs 5.01 per liter.Pakistan Suffers $35m Monthly Loss Due To Oil Smuggling: OCAC
There may be a slight decrease of Rs 1.30 per liter in the price of HSD, as the premium on HSD stands at $6.50 per barrel as in the last two reviews of petroleum products. IFEM is expected to be Rs 3.76 per liter on HSD.
The prices of kerosene oil (KERO) and light diesel oil (LDO) are expected to remain unchanged at Rs 188.66 per liter and Rs 168.18 per liter, respectively.
This rise in petroleum product prices is anticipated to occur without the proposed imposition of an 18 percent general sales tax (GST). However, if the GST is levied, prices could surge by an additional Rs 50 per liter on petrol.
Currently, the government imposes a petroleum levy (PL) of Rs 60 per liter, amounting to 21.4 percent of the current petrol price of Rs 279.75 per liter.
Again, if the government chooses to impose an 18 percent GST on HSD, the price could increase by Rs 53 per litre from the current Rs 285.70 per litre.
An official from the Federal Board of Revenue (FBR) noted that there are currently no proposals under consideration to impose a sales tax on petroleum products. Nevertheless, the estimated revenue from an 18 percent sales tax on petroleum products could range between Rs 21 billion to 25 billion per month, based on current consumption levels.
