Pakistan is expected to implement a petrol price hike starting from July 2023, during the fiscal year 2023/2024. The decision stems from the government’s ambitious goal of collecting approximately Rs870 billion in petroleum levies to enhance revenue generation, as outlined in budget documents.
Despite the challenges faced in the petroleum sector, the government remains determined to meet its revenue targets.
Budget documents reveal that Pakistan aims to generate around Rs870 billion through petroleum levies in the upcoming fiscal year.
This target represents an increase from the revised downward target of Rs542 billion set for the outgoing fiscal year 2022-2023. The government now faces the challenge of collecting an additional Rs328 billion to meet its ambitious revenue goal.
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One noteworthy aspect of the government’s plan is its intention to raise petrol prices in the upcoming fiscal year. Despite the availability of cost-effective oil imports from Russia, the government believes that increasing petrol prices is necessary to generate the required funds.
This decision underscores the government’s determination to leverage the petroleum sector for revenue generation, even in the face of external factors suggesting otherwise.
The recent initiation of importing oil from Russia by Pakistan holds the potential to help stabilize oil prices within the country.
This development could positively impact the efforts to maintain oil prices amidst the government’s decision to raise them. The availability of affordable oil imports from Russia could play a significant role in balancing the overall impact on consumers.
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Pakistan’s plans to increase petrol prices during the fiscal year 2023/2024, starting from July 01, 2023, are driven by the government’s ambitious revenue target for petroleum levies. Despite the benefits of affordable oil imports from Russia and falling international prices, the government believes that raising petrol prices is necessary to achieve its revenue goals.
The successful implementation of this strategy, along with the utilization of Russian oil imports, may help in maintaining stability in oil prices while boosting revenue generation.
READ MORE: Pakistan Aims to Generate Rs870 Billion from Petroleum Levy in 2023-24
