ISLAMABAD: Finance Minister Ishaq Dar Tuesday announced cut in petroleum prices effective from March 01, 2023.
Dar announced the following prices for next fortnight starting from midnight March 01, 2023:
High Speed Diesel- with No change Rs 280 per litre
MS Petrol —with Rs 5 reduction,Rs 267 per litre
Kerosene Oil – with Rs 15 reduction, Rs 187.73 per litre
Light Diesel Oil -with Rs 12 reduction, Rs 184.68 per litre
READ MORE: Pakistan unlikely jack up petroleum prices from March 01
On the other hand, sources said that due to recent sharp appreciation in rupee value during past couple of weeks the government had avoided to further increase the petroleum prices.
Besides, latest inflation record high readings had also compelled the government to avoid take any harsh decision.
The government had considered recent appreciation in the rupee value against the dollar. The local currency recorded a historic low of Rs276.58 to the dollar on February 03, 2023. However, after touching the lowest level the local currency recovered Rs15.08 to the dollar till the end of market on February 28, 2023.
In a statement on February 15, 2023, the finance division said that increase in price was due to Pakistani Rupee (PKR) devaluation applicable for the calculation of current pricing period.
READ MORE: Headline inflation to surge by over 30 pc in February 2023
Previously the government enhanced up to Rs35 per liter on January 29, 2023.
On the other hand, the importance of the scheduled announcement is that the country has already massively increased the petroleum prices during past two announcements and yet it has not applied sales tax.
The normal rate of sales tax has been enhanced to 18 per cent from 17 per cent in the mini-budget, which was announced on February 15, 2023.
The country is facing economic crisis like situation and negotiation a bailout package with the International Monetary Fund (IMF), which was stalled for the past many months.
READ MORE: Mini budget applies as President Alvi signs Finance Supplementary Bill 2023
The government has also presented mini budget for generating additional as demanded by the IMF. Which may also include imposition of sales tax on petroleum products.
Now the local authorities are hoping to finalize staff level agreement with the IMF for enabling the release of tranche to the tune of $1.2 billion.
READ MORE: Experts question sales tax rate increase without Parliament approval
Experts believed that a storm of price hike is inevitable after the changes made by the government to comply with the IMF conditions.
