Pakistan government keeps fuel prices unchanged for next fortnight

The Pakistani government has announced to keep the fuel prices unchanged at the existing level for the next fortnight starting November 16.

According to an official announcement, the prices are worked out “based on price trend in the international market during the last two weeks”.

High Speed Diesel (HSD) prices are kept unchanged at PKR 255.14 per liter, while Motor Spirit (Petrol) are unchanged at PKR 248.38 per liter.

The decision comes as a surprise since the ministry was expected to increase the rates due to a rising trend in global prices.

From July 31 to October 15, the government reduced fuel prices by a cumulative PKR 28.6 per liter over five consecutive reviews.

Separately, the government has set a tax collection target of PKR 1,241 billion for fiscal year 2024-25. In the first quarter ending September, it collected nearly PKR 262 billion, up from PKR 222 billion in the same period the previous year.

For the fiscal year ending June 30, 2024, the government collected approximately PKR 1,019 billion through the petroleum development levy, accounting for about 34% of non-tax revenue and nearly 11% of total tax collection.

According to analysts, although possibility of a mini-budget has been ruled out, the government still has room to increase petroleum levy by PKR 10 per liter, which is currently set at PKR 60 per liter.