The federal government is expected to revise petroleum prices in Pakistan as part of its fortnightly review for December 2024. The new rates will be announced on November 30, 2024, with the revised prices effective from December 1 to 15, 2024.
Expected Petrol Price Hike
Reports suggest that the Oil and Gas Regulatory Authority (OGRA) is preparing to recommend an increase in petrol prices due to a surge in global oil prices. According to sources, petrol prices may rise by Rs. 10 to Rs. 15 per litre in the upcoming revision, reflecting changes in international markets.
Currently, the price of petrol in Pakistan is Rs. 248.38 per litre, while high-speed diesel (HSD) is priced at Rs. 255.14 per litre for November 2024. The final decision on the revised prices will be made by the federal government after considering factors such as:
- Global oil market trends
- Domestic fuel stock levels
- Revenue generation targets
IMF Proposals Add Pressure
In addition to rising global oil prices, the International Monetary Fund (IMF) has proposed reinstating an 18% General Sales Tax (GST) on petroleum products. Currently, GST on petrol is set at zero.
The IMF has also recommended increasing the petroleum levy beyond its current level of Rs. 70 per litre as part of Pakistan’s ongoing economic reforms. These proposals were discussed during an IMF delegation’s visit to Pakistan in early November 2024, led by Mission Chief Nathan Porter.
Potential Impact of GST on Fuel Prices
If the federal government accepts the IMF’s recommendations, it could result in a substantial increase in petroleum prices, adding to the burden on consumers. A similar proposal to apply the standard 18% GST on fuel was rejected during the 2024-25 budget discussions due to its potential inflationary impact.
Conclusion
The expected increase in petroleum prices for December 2024 may lead to higher transportation and production costs across the country, further challenging household budgets. The federal government’s decision will not only reflect international market trends but also its ability to balance revenue targets and public welfare.
Stay tuned for the official announcement on November 30, 2024, to know the exact revised prices.
