According to informed sources, petroleum prices are expected to remain steady for the upcoming two weeks starting March 16. Despite a slight increase in the premium on petrol import to $12.15 per barrel, and unchanged premium on high-speed diesel (HSD) import at $6.50 per barrel, the government has room to manage prices. While petrol prices may see a marginal increase of about a rupee per litre, HSD prices are anticipated to decrease by less than Re1 per litre.
This stability is attributed to factors such as steady exchange rates and international product prices. Additionally, the government has effectively utilized mechanisms such as exchange rate adjustments and inland freight equalization margin (IFEM) to maintain price equilibrium. The prices of kerosene and light diesel oil are also expected to remain unchanged.
The government has already reached the maximum permissible limit of Rs60 per litre petroleum levy on both petrol and HSD, as mandated by law. With a budget target to collect Rs869 billion in petroleum levy during the current fiscal year, the government has collected about Rs475 billion in the first half. Despite gradual increases in per litre levy, it is anticipated to achieve a collection of about Rs970 billion by the fiscal year-end, with a revised target of Rs920 billion by end-June.
Presently, the government imposes approximately Rs82 per litre tax on both petrol and HSD, with a zero GST on all petroleum products. However, it levies Rs60 per litre Petroleum Development Levy (PDL) on both products.
Story by Khaleeq Kiani
