Thursday Apr 14, 2022
ISLAMABAD: The price of petrol is set to cross Rs200 per litre for the first time in history.
In the second fortnight of the current month starting April 16, the newly formed government would be required to either jack up the price of petroleum products or enhance subsidies to maintain the existing price.
On February 28, former prime minister Imran Khan announced a reduction of Rs10 per litre in petrol and diesel prices and a price freeze till the announcement of the budget for 2022-23.
According to sources, if the coalition government chooses to increase the price, the per-litre petrol cost will jump by Rs83.50 — if they decide to increase the levy and GST.
It is worth mentioning that the new government would be in a critical situation and might choose not to increase prices in a bid to win over public support. However, if the current government decides to keep the prices unchanged, then it will be forced to give another hefty amount in subsidy from April 16 to 30.
According to sources, the Oil and Gas Regulatory Authority (OGRA) had submitted a proposal in this regard to the petroleum division, which includes working on petroleum levy and general sales tax (GST).
Sources said that the proposal of an increase of Rs83.50 per litre petrol and Rs119 per litre diesel has been submitted which includes a Rs30 levy and 17% GST.
However, with the existing tax and levy, the authorities have proposed the Finance Division increase the petrol price by Rs21.52 per litre and Rs51.30 per litre diesel.
For kerosene oil Rs35.5 per litre and Rs38.89 per litre light-diesel increases have been proposed on the current tax rate. While with higher levy and GST a hike of Rs77.56 per litre of kerosene oil and Rs77.31 per litre of light diesel has been proposed.
The sources, however, mentioned that a final decision in this regard will be taken by the Finance Division after consultation with Prime Minister Shehbaz Sharif.
It is worth mentioning that currently, the petrol price in Pakistan is Rs149.86 while diesel is available at Rs144.15, with zero per cent levy and GST. Sources mentioned that working has been done without including 17% GST and Rs30 levy.