Petrol, diesel prices expected to rise in Pakistan

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By Sana Kahn

Lahore ( Pakistan News Online)The government has recently made a significant increase in electricity prices, and now it seems petrol prices are next in line. From next month, petrol and diesel prices are expected to rise by 7 to 8 rupees per liter.

Details reveal that in the past few days, the international market has seen an increase in petrol and high-speed diesel prices by $4.4 and $5.5 per barrel, respectively. Considering current tax rates and other calculations, petrol prices are expected to rise by 7 rupees per liter and diesel by 8.5 rupees per liter.

There is also a possibility that if the government opts for a petroleum development levy higher than the current 60 rupees per liter with the start of the new fiscal year, prices could increase further.

The government has raised the maximum limit of the petroleum development levy to 80 rupees per liter in the Finance Bill 2024, aiming to collect 1.28 trillion rupees compared to the estimated 960 billion rupees collected in the last fiscal year, which was approximately 91 billion rupees more than the budget target of 869 billion rupees.

Earlier, from May 1, petrol and diesel prices were reduced due to a drop in international market prices. This brought down petrol prices from 294 rupees on April 30 to approximately 259 rupees per liter, and diesel prices decreased by around 22 rupees per liter to 268 rupees.

Currently, the government is collecting around 77 rupees per liter in taxes on petrol and diesel, with the general sales tax on petroleum products set at zero. However, a petroleum levy of 60 rupees per liter is charged on both petrol and diesel, and approximately 17 rupees per liter in customs duty is also collected.

As of now, petrol is available at 258.16 rupees per liter, and diesel is available at 267.89 rupees per liter.

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