What will be the new petroleum prices in April?

ISLAMABAD: A substantial hike in petroleum prices is likely in April, making life more difficult for the common man who is already grappling with inflated gas and electricity bills.

Reports suggest that the price of petrol may surge by Rs 9.50 and diesel by Rs 0.86. Hence increasing the petrol price from Rs 279.75 to Rs 289.25 per liter and diesel to Rs 285.56.

The International Monetary Fund (IMF) has requested Pakistan impose an 18 per cent general sales tax (GST) on fuel products, leading to an expected increase in the petroleum prices in April and high-speed diesel, among other petroleum oils and lubricants (POLs).

Sources familiar with the situation disclosed that the global lender urged Pakistani authorities to eliminate the sales tax relaxation on petrol and other POLs.

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Amid ongoing negotiations, the government has been advised to implement a sales tax on petroleum products while maintaining a record levy of Rs 60 on all petroleum products.

In response, petroleum dealers have reiterated their demand for an increase in profit margins to offset potential losses.

Furthermore, there are indications that the government is mulling a hike in the petroleum levy from Rs 60 to Rs 100 in line with the IMF demand.

The Petroleum Development Levy has undergone several adjustments in recent years, witnessing notable increments during FY 2023. Initially set at Rs 20 per liter in July 2022, it surged to Rs 50 per liter in November 2022 and further escalated to Rs 60 per liter by September 2023.