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Petrol price in Pakistan expected to decrease by over Rs7/litre

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3 years ago

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  • Latest news about petrol price in Pakistan suggests rates to drop.
  • Diesel price expected to drop by Rs16.61 per litre, light diesel Rs10.87.
  • Govt apparently not in mood to raise petrol price, say oil industry officials.

KARACHI: The price of petrol in Pakistan may decrease by Rs7.24 per litre and diesel by Rs16.61 per litre in the next fortnightly review if the government passes on the impact of the retreating global market by not raising taxation, latest news about the rates suggest.

Oil industry data shows that all petroleum prices are showing a declining trend; however, it is not clear if the government will pass on the impact or offset it by raising taxation.

Industry calculations show that the ex-depot price of petrol has registered a Rs7.24 per litre decrease to Rs230.19 per litre for the next fortnight compared to the existing price of Rs237.43 per litre, The News reported.

The ex-depot price of diesel has decreased by Rs16.61 to Rs230.82 per litre for the next fortnight compared to the current price of Rs247.43 per litre.

The ex-depot price of light diesel reduced by Rs10.87 to Rs186.41 per litre for the upcoming fortnight compared to Rs197.28 per litre now.

The ex-depot price of kerosene declined by Rs14.20 to Rs187.82 per litre against Rs197.28 per litre currently.

The prices calculated by the oil industry are based on the existing taxation by the government.

The government is charging zero general sales tax (GST) on petroleum products where the rate of petroleum levy (PL) on petrol is Rs37.42 and on diesel Rs7.58 per litre.

Under the International Monetary Fund (IMF) conditions, the government has to raise the levy to Rs50 per litre on diesel and petrol to generate additional revenue to achieve the tax collection target for this fiscal.

According to the oil sector officials, the government apparently is not in a mood to increase the petroleum prices by raising the rate of levy or re-imposing GST after Ishaq Dar takes the help of the Finance Ministry.

“It seems that Dar would not be raising the price of petroleum products, at least for this fortnight to send out a message about his plan to provide relief to the masses as he had pledged to do so before taking the charge of the finance ministry,” a top oil firm official believed.

He said that Dar might pass the impact of the global downtrend or he could also decide to stick with the same if global markets further eased in the coming review of prices.

According to him, the average price of crude oil was around 91 dollars per barrel from September 16 to 28, whereas average prices of diesel and petrol were $115 and $81 per barrel respectively in the global market.

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Robust activity lets PSX climb above 115,000 level again.

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5 months ago

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On Friday, the Pakistan Stock Exchange (PSX) resumed its upward trend, crossing 115,000 points once more.

The PSX had strong action in the morning session, as the KSE-100 index increased by 1,000 points to 115,138.

The notoriously volatile PSX closed Thursday at 114,037 points, up 594 points.

DOLLAR DEPRECIES

Meanwhile, in the interbank market this morning, the US dollar fell 7 paisas to Rs278.65 against the Pakistani rupee.

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SBP will announce monetary policy on January 27.

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5 months ago

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The State Bank of Pakistan (SBP) will release its monetary policy on Monday.

The Monetary Policy Committee (MPC) of the SBP will convene on the first day of the following week to make decisions on monetary policy.

The Monetary Policy decision will be announced by Governor SBP Jameel Ahmad at a news conference on the same day after the MPC meeting, according to an official release.

In December, the central bank reduced policy rates by 200 basis points (bps) to 13 percent.

“In November 2024, headline inflation fell to 4.9 percent year on year, meeting the MPC’s estimates. This decrease was mostly caused by the ongoing decline in food inflation and the phasing out of the impact of the gas tariff increase in November 2023,” SBP stated in an official release.

“However, the Committee noted that core inflation, at 9.7 percent, is proving to be sticky, while consumer and business inflation expectations remain volatile.” To that end, the Committee restated its previous assessment that inflation may remain volatile in the short term before stabilizing within the target range.

“At the same time, growth prospects have slightly improved, as evidenced by a recent increase in high-frequency indicators of economic activity.” Overall, the Committee concluded that its approach of gradual policy rate decreases is keeping inflationary and external account pressures under control while promoting long-term economic growth.

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Finance Minister Meets With World Leaders at World Economic Forum in Davos

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5 months ago

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During his attendance at the World Economic Forum in Davos, Switzerland, Finance Minister Muhammad Aurangzeb has met with officials of organisations and leaders of many nations.
Bangladesh’s Chief Advisor, Muhammad Younas, met with Mohammad Aurangzeb.
On the fringes of the World Economic Forum’s Annual Meeting 2025 Opening Banquet, there was an informal meeting.
Additionally, the Finance Minister met with Anwar Ibrahim, the Prime Minister of Malaysia.
Both leaders discussed economic cooperation and bilateral ties.
Muhammad Aurangzeb also had a meeting with Dp World’s Rizwan Soomro and Yuvraj Narayan.
They talked about how to strengthen Pakistan’s logistics and infrastructure systems to support trade.
“The Pakistani government is committed to advancing joint projects and values partnerships in both business-to-business and business-to-government cooperation,” the finance minister added.

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