ISLAMABAD: The prices of petrol and diesel are estimated to fall by about Rs10 per litre for the next fortnight ending April 30 owing to a decline in global rates.
This relief is, however, subject to unchanged tax rates. An official said that there were also considerations on the part of the government to not let the petroleum prices decline substantially, which could trigger an increase in demand. Meanwhile, refineries are demanding that the government impose GST on petroleum products.
The government has also given an undertaking to the IMF to impose about Rs5 per litre of carbon levy as part of the $1.3 billion Resilience and Sustainability Facility, effective July 1.
Based on existing tax rates, the informed sources said the ex-depot price of petrol was estimated to go down by about Rs10 depending on the final calculation on April 15, followed by a Rs9 per litre cut in high-speed diesel (HSD).
The estimates for lower petrol prices stem from a decline of about $6 per barrel in the international price of petrol and about $5 per barrel in HSD over the past two weeks.
The ex-depot petrol price currently stands at Rs254.63 per litre. The ex-depot price of HSD stands at Rs258.64 per litre.
The government is currently charging about Rs86 per litre on both petrol and diesel. Although the general sales tax (GST) is zero on all petroleum products, the government is charging Rs70 per litre of petroleum development levy on petrol, diesel, and high-octane products that normally impact the masses.
The government also charges about Rs16 per litre for customs duty on petrol and HSD, irrespective of their local production or imports. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.
Published in Dawn, April 12th, 2025
