In a potential relief for consumers, the price of petrol in Pakistan is expected to decrease by Rs10 per liter, while diesel prices are set to increase for the second half of July. However, the government may not fully pass on the benefit of lower oil prices to consumers and could potentially raise the petroleum tax (PL) to generate additional revenue. The final decision will be influenced by factors such as international oil prices, exchange rates, and the state of the local market.
| Petroleum Product | Price (per liter) |
|---|---|
| Petrol | Rs253 |
| High-Speed Diesel | Rs253.50 |
| Kerosene Oil | Rs230.26 |
| Light Diesel Oil | Rs226.15 |
According to reliable sources, the government currently imposes a petroleum levy of Rs55 per liter on petrol. There is speculation that this levy might be raised to Rs60 per liter, which would mark the highest tax rate in history. Despite the decrease of Rs10.08 per liter in the price of petrol, the government has made this decision due to the stability of the Pakistani rupee against the dollar, following the approval of an IMF package.
Insiders from the petroleum division have indicated that the price of petrol could potentially decrease by Rs10.08 per liter. This reduction would be a welcome relief for motorcycle and car owners who rely on petrol instead of compressed natural gas (CNG). However, the scarcity of CNG, particularly in Punjab, has prompted many people to switch to gasoline. Moreover, the illegal smuggling of Iranian gasoline has exacerbated the situation, adversely affecting the legal oil business in Pakistan.
Conversely, the price of high-speed diesel (HSD) is expected to increase by Rs3.66 per liter in the latter part of July. This hike will pose challenges for both consumers and businesses. Additionally, the price of kerosene oil is likely to rise by 73 paisa per liter, while the cost of light diesel oil (LDO) may increase by Rs1.43 per liter.
If the proposed reduction in gasoline prices is implemented, the ex-depot price would be Rs251.92 per liter instead of the current market price of Rs262 per liter. However, the ex-depot price of diesel (HSD) could rise to Rs264.16 per liter, surpassing the market price of Rs260.50 per liter. These potential changes are expected to impact the lives of individuals, especially those who rely on high-speed fuel for transportation and agricultural activities.
Furthermore, the price of kerosene is projected to increase by Rs0.73 per liter, resulting in an ex-depot price of Rs171.78 per liter. Similarly, the price of light diesel oil (LDO) could climb by Rs1.43 per liter, setting the ex-depot price at Rs155.65 per liter. These adjustments may affect households that use oil for cooking purposes and factories that rely on LDO for various operations.
The suggested modifications in fuel prices highlight the challenges faced by consumers and businesses as they impact transportation costs, electricity generation expenses, and household budgets. Despite the marginal decrease in gas prices, consumers may end up paying more due to the potential increase in the petroleum levy. The government will ultimately determine the final changes in fuel prices, considering factors such as international oil prices, exchange rates, and the local market conditions. However, the outcome of these decisions will directly impact the lives of a significant number of people.
In conclusion, while the price of petrol is expected to decrease, diesel prices are likely to rise in the second half of July. The government’s decision to potentially raise the petroleum tax may limit the extent of relief for consumers. These changes in fuel prices will have a profound impact on individuals, businesses, and various sectors of the economy, emphasizing the significance of making well-informed decisions that strike a balance between fiscal goals and the welfare of the population.
