It has been forecasted that the costs of petroleum-based goods may rise in the nation once more.
As per news sources, there might be a potential rise in petrol prices by Rs 9.5 per liter starting April 1st. If this occurs, the anticipated new price range for petrol would be between Rs 279.75 and Rs 289.25 per liter.
Conversely, it has been reported that the government aimed to raise the petroleum tax from Rs60 to Rs100. The petroleum development levy has experienced various changes in recent times, with a substantial hike occurring in FY-2023.
Additionally, the federal government is exploring a plan to introduce a General Sales Tax (GST) on petroleum products or raise the existing tax rate even more to satisfy the International Monetary Fund’s requirement of restoring the GST on petrol to 18%. Sources familiar with the matter have shared this information.
In the upcoming budget for the new financial year, there are discussions to elevate the levy on petroleum from Rs60 to Rs100 per liter.
At present, a tax of Rs. 60 per liter is applied to both petrol and diesel, generating approximately Rs. 950 billion annually. Since March 2022, the Goods and Services Tax (GST) on petroleum products has been maintained at a zero rate. In the proposed budget, there is a plan to increase the GST rate to 18%.
The International Monetary Fund (IMF) has called for the reinstatement of the standard Goods and Services Tax (GST) rate, according to sources. On March 15, the government chose to keep petrol prices stable while lowering the cost of high-speed diesel by Rs 1.77 per litre.
As stated in the announcement, the petrol price will remain at Rs 279.75 per litre without any changes. On the other hand, there has been a decrease of Rs 1.77 in the cost of high-speed diesel, now amounting to Rs 285.56 per litre.
Amidst global oil price fluctuations, this action intends to establish consistency in domestic fuel costs. The Ministry of Finance routinely assesses petroleum product prices, taking into account international market patterns and their effects on consumers and the economy, in order to achieve balance and stability.
Though not directly stated in the announcement, information from the Ministry of Finance suggests that there has been a decrease of 2.12 rupees per liter in the cost of light diesel oil and a reduction of 1.35 rupees per liter in the price of kerosene.
