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

India-EU Trade Deal Breakthrough Soon?

Negotiators report increased momentum in discussions, which have been given a boost from US President Donald Trump’s tariff offensive…reports Asian Lite News India and the European Union aim to finalise a trade

Europe Seeks Peace in Gaza

European countries condemn Israeli interception of Gaza-bound flotilla, demand safety of citizens…reports Asian Lite News Israel’s interception of an international flotilla carrying humanitarian aid to Gaza has sparked condemnation across Europe, with

GAZA: Egypt to Host Peace Talks

Egypt hopes the discussions will help “end the war and the suffering of the brotherly Palestinian people, which has continued for two consecutive years…reports Asian Lite News Egypt will host Israeli and

‘My Injuries Made Me’

During his four-year battle with injury, the incumbent fast bowling spearhead made occasional appearances but couldn’t bear the workload and demands of red-ball cricket….reports Asian Lite News England tearaway Jofra Archer believes

Hegseth Cuts Deep

US Defense Secretary Hegseth abruptly fired Navy Chief Jon Harrison in a major Pentagon shake-up….reports Asian Lite News US Defense Secretary Pete Hegseth abruptly dismissed Jon Harrison, the Navy Chief of Staff,
Go toTop

Don't Miss

Nawaz Sharif to return to Pakistan in January

Nawaz Sharif will allocate tickets to the candidates for the

Taliban negotiators visit Pakistan to ‘consult leadership’

The Taliban’s delegation visited Pakistan to seek “guidance” from Pakistani