The federal government is poised to announce new petrol prices on June 31, 2024, with the revised rates coming into effect from July 1. This adjustment will be the first since the presentation of the budget for the fiscal year 2024-25 on June 12. The implementation coincides with the enactment of the new finance bill.
Proposed Increase in Petroleum Levy
A significant component of the budget proposal is the increase in the maximum petroleum levy by Rs20, raising it to Rs80 per litre. This increase is seen as a crucial step for the government to boost its revenue. The petroleum levy is a major revenue source, and the government aims to leverage this to secure another bailout package from the International Monetary Fund (IMF).
According to the proposed Finance Bill 2024, this maximum petroleum levy rate will apply to both petrol and high-speed diesel.
Current Petrol Prices in Pakistan
Earlier this month, the government provided some relief to consumers by reducing the prices of petrol and high-speed diesel (HSD) by Rs10.20 and Rs2.33 per litre, respectively. Following this reduction, the current petrol price stands at Rs258.16 per litre, while high-speed diesel is priced at Rs267.89 per litre.
Expected Petrol Prices from July 1
With the proposed increase in the petroleum levy, petrol and diesel prices in Pakistan are anticipated to rise. This change is expected to impact consumers significantly, as the revised prices will reflect the new levy rates.
Government’s Revenue Target
The government has set an ambitious revenue target for the Federal Board of Revenue (FBR) at Rs12.97 trillion for the next fiscal year. The increased petroleum levy is a key measure to help achieve this target.
As the new fiscal year approaches, Pakistani consumers should brace themselves for a potential hike in petrol and diesel prices starting July 1, 2024. The increased petroleum levy, a vital part of the new finance bill, is aimed at generating additional revenue for the government to meet its financial goals and secure international aid.
Stay tuned for further updates on the official announcement of the new petrol prices and how it will affect your daily expenses.
