Pakistan government likely to raise petroleum prices from Nov 16

The Pakistani government is expected to increase petroleum product prices for the upcoming fortnight starting November 16 due to a significant rise in global prices.

According to a recent review from oil marketing companies, the price of petrol is likely to go up by PKR 3.66 per liter, while diesel may see an increase of PKR 4.99 per liter. Currently, petrol prices are at PKR 248.38 per liter and diesel prices are at PKR 255.88 per liter.

The working paper indicated that for the review period, global petrol prices surged by $2.51 to $86.97 a barrel, and diesel prices rose by $4.43 to $93.03 per barrel.

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

On October 15, the government increased diesel prices by PKR 5 per liter but kept petrol prices unchanged. In the most recent review on October 31, petrol prices increased by PKR 1.35 per liter and diesel prices by PKR 3.85 per liter.

This anticipated rise in petroleum product prices marks the second consecutive fortnightly increase.

On the other hand, despite passing the Finance Bill for the current fiscal year, the government has been unable to raise the tax levy on petroleum products by PKR 10 per liter.

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, 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.