Not a news that many of us wanted to hear. As per different reports, the petrol price in Pakistan may increase after the Pakistan Budget 2025. Citing the recent developments, many media outlets have indicated a hike due to the proposed increase in petroleum levy as well as the imposition of a carbon levy and GST. Let’s see the details here:
The Petroleum Division has moved a proposal to introduce a carbon levy on major petroleum products like petrol, diesel, etc. The suggested amount of carbon levy per liter is Rs. 2.5. It is expected to support climate change initiatives by increasing the revenue. For its implementation in the upcoming budget 2025-26, a summary is sent to the Cabinet Committee for Disposal of Legislative Cases (CCLC). It is in line with Pakistan’s commitment to its agreement with the IMF.
Another important development is the introduction of GST on petroleum products to support the local refineries. For this purpose, a 3-5% General Sales Tax (GST) has been proposed. It will again increase the overall consumer price of petrol, diesel, etc.
Coming to the petroleum levy, it was increased in the Pakistan Budget 2024-25 from Rs. 60 to Rs. 80 (currently Rs. 78 per litre on petrol and Rs. 77 per litre on diesel). Now, the reports suggest that to meet the IMF conditions, the government is also considering to increase the Petroleum Development Levy (PDL) to over Rs. 100 (some suggest Rs. 90).
If these proposals are accepted and implemented in the upcoming budget, the prices of petroleum products can increase. The current prices of petrol and diesel are Rs. 252.63 and Rs. 254.64 respectively. If all these proposals are accepted and global prices are increased, the petrol price could even go over Rs. 300 again.
What are your thoughts on these proposals? Share your thoughts in the comment section below.
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