Pakistan to announce new petroleum prices on Feb 28

Pakistan is set to announce new prices of petroleum products on February 28, 2023 for next fortnight amid rupee appreciation and sales tax rate hike.

The new prices will be effective from March 01, 2023 and will remain applicable till March 15, 2023.

The government will consider 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 6 per cent or Rs16.59 to the dollar till the end of market on February 23, 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.

The latest surge in petroleum prices is second round as previously the government enhanced up to Rs35 per liter on January 29, 2023.

On the other hand, he 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.

Experts said that in case of sales tax levy on the petroleum products, the government will further raise the prices.

The petroleum prices in Pakistan as of February 16, 2023, which will be applicable till February 28, 2023, are:

Petrol	Rs272 per liter
High Speed Diesel	Rs280 per liter
Kerosene Oil	Rs202.73 per liter
Light Speed Diesel Oil	Rs196.68 per liter

The finance division on February 15, 2023 notified the new rates for next fortnight, as applicable from February 16, 2023:

Petrol rate has been increased by Rs22.20 to Rs272 per liter from Rs249.80

High Speed Diesel (HSD) rate has been increased by Rs17.20 per liter to Rs280 per liter from Rs262.80.

The rate of Kerosene oil has been enhanced by Rs12.90 to Rs202.73 per liter from Rs189.83.

The price of light diesel oil (LDO) has been increased by Rs9.68 to Rs196.68 from Rs187.

The government increased the prices up to Rs22.20 per liter in petroleum products.

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.

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.

Experts believed that a storm of price hike is inevitable after the changes made by the government to comply with the IMF conditions.