April 15, 2024
2 mins read

Pakistan Braces for Record Fuel Price Surge

Under the commitments made with the International Monetary Fund, the government had set a budget target to collect PKR 869bn as a petroleum levy on petroleum products during the current fiscal year….reports Lite News

As the situation in the Middle East continues to unfold, the higher international market is estimated to push up the prices of petrol and high-speed diesel by about Pakistani currency (PKR) 2.50 and PKR 8.50 per litre, respectively, Dawn reported.

According to sources, petrol and high-speed diesel (HSD) prices experienced a rise of approximately USD 4 and USD 4.50 per barrel, respectively, during the last fortnight, prior to the recent escalation.

As a result, projections suggest that petrol prices could increase by PKR 2.50 to PKR 2.80 per litre, while HSD prices may rise by PKR 8 to PKR 8.50 per litre, pending final calculations, as per Dawn.

The import premium on petrol has dropped by almost 21 per cent to USD 10.7 per barrel over the last fortnight when compared to USD 13.50 in last few days of March and the rupee strengthened by about 40 paisa against a dollar to USD 278.20.

According to Dawn, the net impact is estimated to be about USD 2.80 per litre increase in petrol price from the existing rate of USD 289.41.

The HSD price, on the other hand, was up in the international market and its import premium paid by the benchmark Pakistan State Oil remained unchanged at USD 6.50 per barrel.

HSD rate was thus estimated to be higher by PKR 8 to PKR 8.50 per litre, subject to a final exchange rate adjustment in pricing, from the current rate of PKR 282.24 per litre at the depot stage.

For the purpose of price calculations, officials said the petrol price had gone up by about USD 4 per barrel to USD 98.5 last week, while the HSD price went up by USD 4.50 per barrel to USD 102.9.

Nearly two weeks ago, the government implemented a price hike of PKR 9.66 per litre for petrol and a reduction of PKR 3.32 per litre for high-speed diesel (HSD), effective until April 15.

The government has also reached the maximum permissible limit of PKR 60 per litre in petroleum levy, as mandated by law, for both petrol and HSD.

Under the commitments made with the International Monetary Fund, the government had set a budget target to collect PKR 869bn as a petroleum levy on petroleum products during the current fiscal year. It has already collected about PKR 475bn in the first half (July-December) of the fiscal year, though the government is expected to mop up about PKR 970bn by the end of the year, despite the revised target of PKR 920bn by the end of June.

Currently, the government is charging about PKR 82 per litre in taxes on both petrol and HSD. (ANI)

ALSO READ: Pakistan Welcomes High-Level Saudi Delegation

Previous Story

Badenoch accuses ‘those with influence’ of cowardice  

Next Story

Scholz walks tightrope on trade and politics in China

Latest from -Top News

Zero Tariffs? Trump Claims Big Win Over India

Trump Claims India to Eliminate Tariffs on U.S. Imports..reports Asian Lite News U.S. President Donald Trump announced on Tuesday that India has either already removed or is in the process of removing

UNSC Grills Pakistan Over Pahalgam Attack

Though Pakistan claimed that the meeting largely served and achieved the objectives of the UNSC’s meeting, reports showed that it flopped miserably…reports Asian Lite News The United Nations Security Council (UNSC) reportedly

Pakistan’s Terror Link “No Secret”: Bilawal Bhutto

Zardari stated that Pakistan’s intelligence services have since changed course and no longer collaborate with extremist elements..reports Asian Lite News Bilawal Bhutto Zardari, former Foreign Minister of Pakistan, has openly acknowledged Pakistan’s

Islamists Rise Under Yunus Rule

After the departure of former Prime Minister Sheikh Hasina in August 2024, Islamic parties in Bangladesh, crushed for years by the Awami League government, have made inroads into the political arena…writes Baidya
Go toTop

Don't Miss

Bilawal says Imran favoured Modi during 2019 polls

Bilawal said that Khan cannot become Zulfikar Ali Bhutto with

Pakistan students join Texas A&M University hosted energy scholars program

The students had an opportunity to brief the Pakistani Embassy