The federal government is expected to revise petrol and diesel prices in Pakistan during the upcoming fortnightly review for December 2024.
The new petroleum prices will be announced on the night of November 30, with the revised rates taking effect from December 1 to 15. Reports indicate that the Oil and Gas Regulatory Authority (OGRA) is likely to recommend a price hike for petrol due to a recent upward trend in global oil prices.
According to sources, petrol prices may increase by Rs. 10 to Rs. 15 per litre for the first half of December 2024, reflecting the rise in international market rates. The final decision will be made by the federal government after considering factors such as available stock, revenue targets, and global prices.
Currently, petrol in Pakistan is priced at Rs. 248.38 per litre, while high-speed diesel costs Rs. 255.14 per litre for November 2024.
On the other hand, the International Monetary Fund (IMF) has called for the reinstatement of an 18% General Sales Tax (GST) on petroleum products and has proposed increasing the petroleum levy to Rs. 70 per litre.
An IMF delegation, led by Pakistan Mission Chief Nathan Porter, visited Pakistan in early November for technical discussions. As part of these talks, the IMF suggested imposing GST on petroleum products, which is currently set at zero. The existing petroleum levy of Rs70 per liter may also see further hikes.
During the 2024-25 budget preparation in July, a similar proposal to apply the standard 18% GST on petroleum products was rejected by the prime minister due to its inflationary impact on the public.
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