ISLAMABAD: Consumers in Pakistan may receive a much-needed reprieve as petrol and diesel prices are expected to decrease by approximately Rs10 per litre for the upcoming fortnight ending April 30, driven by a drop in international oil prices.
This potential reduction is contingent on the government maintaining current tax rates. However, officials indicate that the government may limit the decline to prevent a sharp rise in demand. At the same time, local refineries are lobbying for the reintroduction of General Sales Tax (GST) on petroleum products.
Sources report that the ex-depot price of petrol could fall by Rs10 per litre, with high-speed diesel (HSD) seeing a Rs9 cut, following a $6 and $5 per barrel decrease in global petrol and HSD prices, respectively. Currently, ex-depot prices stand at Rs254.63 per litre for petrol and Rs258.64 for HSD.
Despite GST being set at zero, the government levies Rs70 per litre as Petroleum Development Levy (PDL) on petrol, diesel, and high-octane, alongside Rs16 in customs duties and Rs17 in margins for oil companies and dealers. Additionally, from July 1, a Rs5 per litre carbon levy is expected under the IMF’s $1.3 billion Resilience and Sustainability Facility.
Story by Khaleeq Kiani
