KARACHI – Petrol and diesel prices are expected to climb in Pakistan from December 1 in the wake of new taxes.
Sources familiar with the development revealed that Petrol, Diesel are expected to jump by Rs0.50 per liter from starting of next month as International Monetary Fund (IMF) pushed for 18 percent sales tax.
It was reported that US-based lender turned down Islamabad’s proposal to impose 1-2% sales tax. As the government has not implemented IMF’s demand, the proposal threatens to derail $5-6 billion worth of refinery upgrade projects under the rules.
Petrol Price in Pakistan
| Products | Price |
|---|---|
| Petrol | Rs248.38 |
| Diesel | Rs255.14 |
With the expected changes, there will be slight difference in Petrol and Diesel Rates as incumbent authorities are looking to cut petroleum levy by Rs15per liter and replace it with an 18 percent GST to meet revenue targets.
In light of shift from 0-rated to exempt status for sales tax on petroleum products, it aimed to jck up operational and project costs, potentially canceling $1.65 billion incentive package.
This change could result in a $1.152 billion loss for refineries and cause a $1 billion annual foreign exchange loss due to delays in upgrades.
Petrol, Diesel prices remain unchanged for second half of November
