ISLAMABAD – Global oil prices have plunged in recent times, but the retail prices for petrol and diesel in cash-strapped Pakistan witnessed no such changes, even though the fuel got expensive earlier this month.
In a similar fashion, the drop in global prices is unlikely to translate into an immediate reduction in rates in cash-strapped Pakistan for the next fortnight as the government is making efforts to adjust the previous exchange losses besides raising taxation on the fuels in accordance with IMF negotiations.
Already burdened people, who are forced to pay exorbitant prices, are expecting a little relief but sources informed with the development claimed that no such moves are on the card despite back-breaking inflation, which stemmed due to inflated fuel prices.
As people have to pay similar prices for petrol, the price of diesel is likely to be slashed by up to Rs20/litre. The price of diesel will remain unchanged if the coalition government jacked up the general sales tax (GST) on diesel.
As officials mulled soaring petroleum levy on diesel by Rs5 per litre from tomorrow and by another Rs5 per litre from April 2023 in wake of the revenue shortfall, which will rule out any drop in prices of petroleum products.
As of now, the petroleum levy on high-speed diesel is around Rs40 per litre, which is expected to move up to Rs50 per litre in line with International Monetary Fund (IMF) talks.
Meanwhile, the price of kerosene oil and light diesel oil (LDO) is expected to be slashed by Rs15 and more.
Two weeks back, the Sharif-led government increased the price of petrol by Rs22.20 per litre to Rs272 after the massive devaluation of the local currency. Rupee plunged sharply against the greenback since an artificial cap on the local currency was removed.
