Pakistan has issued official petroleum prices that will remained applicable till December 31, 2022. The official prices of petroleum products from December 16, 2022 to December 31, 2022 are:
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Pakistan sharply cuts petroleum prices effective from Dec 16, 2022
ISLAMABAD: Pakistan on Thursday sharply reduced the prices of petroleum products for next fortnight effective from December 16, 2022.
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Pakistan may cut petroleum prices on Dec 15, 2022
Pakistan may reduce petroleum prices on December 15 to be effective for last fortnight of the year 2022. Experts believe that the government may reduce the prices of petroleum products in the wake of sharp decline in oil prices in global markets.
Benchmark Brent crude is ended at $76 per barrel in the international trade. The Brent crude has hit above $120 per barrel during mid-June this year and now fell to the present level leaving ample room to the present government to revise downward the prices to provide relief the domestic consumers.
READ MORE: New petroleum prices in Pakistan effective from December 01, 2022
An energy expert told PkRevenue that the country may revise the petroleum prices for the next fortnight amid sharp fall in international oil prices.
However, on the other hand the depreciation in rupee value and imminent imposition of sales tax on petroleum products the benefit of decline in international oil prices may not pass on to domestic consumers.
READ MORE: Pakistan may impose petroleum tax to avert revenue shortfall
The expert believed that the imposition of sales tax on petroleum products would increase the retail prices as well as result in high inflation.
However, experts believed that rise in petroleum prices were imminent in the next review as the government was under immense pressure from the IMF to impose sales tax on petroleum products.
At present the government adopted a policy to keep zero sales tax on petroleum products instead flat rate of 17 per cent. Furthermore, the government also committed to apply petroleum levy to generate more revenue for curtailing budget deficit.
READ MORE: Petroleum prices in Pakistan for next fortnight effective from November 16, 2022
The government on December 01, 2022 revised the latest petroleum prices. According to a notification, the prices of petroleum products with effect from December 01, 2022 till December 15, 2022 are be as follows:
Petrol price will be remained unchanged at Rs224.80 per liter.
The rate of high speed diesel (HSD) will also be remained unchanged at Rs235.30 per liter.
The price of kerosene has been reduced by Rs10 per liter to Rs181.83 from Rs191.30.
READ MORE: Petroleum prices in Pakistan effective from November 01, 2022
Likewise, the price of light diesel oil has been reduced by Rs7.50 per liter to Rs179.00 from Rs186.50.
The exchange rate is again showing a deterioration in rupee value against the dollar. The US dollar continued to make gain against the Pakistani Rupee (PKR) on December 09, 2022 and reached PKR 224.40 in the interbank foreign exchange market.
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New petroleum prices in Pakistan effective from December 01, 2022
ISLAMABAD: The finance division on Wednesday issued the new prices of petroleum products with effect from December 01, 2022.
According to a notification, the prices of petroleum products with effect from December 01, 2022 will be as follows:
Petrol price will be remained unchanged at Rs224.80 per liter.
READ MORE: Pakistan may impose petroleum tax to avert revenue shortfall
The rate of high speed diesel (HSD) will also be remained unchanged at Rs235.30 per liter.
The price of kerosene has been reduced by Rs10 per liter to Rs181.83 from Rs191.30.
Likewise, the price of light diesel oil has been reduced by Rs7.50 per liter to Rs179.00 from Rs186.50.
Experts said that the government had revised the prices for the next fortnight amid sharp fall in international oil prices.
READ MORE: Petroleum prices in Pakistan for next fortnight effective from November 16, 2022
However, on the other hand the depreciation in rupee value and imminent imposition of sales tax on petroleum products the benefit of decline in international oil prices may not pass on to domestic consumers.
The benchmark Brent crude oil ended at $83.19 a barrel on November 28, 2022, having slumped more than 3 per cent to $80.61 earlier in the session for its lowest since January 4, 2022.
The Brent crude has hit above $120 per barrel during mid-June this year and now fell to the present level leaving ample room to the present government to revise downward the prices to provide relief the domestic consumers.
READ MORE: Petroleum prices in Pakistan effective from November 01, 2022
On the other side the government was considering to impose sales tax on petroleum products in order to satisfy International Monetary Fund (IMF) for upcoming talks, which were already delayed.
Experts believed that the imposition of sales tax on petroleum products would increase the retail prices as well as result in high inflation.
Experts was anticipating rise in petroleum prices were imminent in the next review as the government was under immense pressure from the IMF to impose sales tax on petroleum products.
READ MORE: Pakistan keeps petroleum prices unchanged from October 16, 2022
At present the government adopted a policy to keep zero sales tax on petroleum products instead flat rate of 17 per cent. Furthermore, the government also committed to apply petroleum levy to generate more revenue for curtailing budget deficit.
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Pakistan keeps prices of petrol, HSD unchanged till December 15, 2022
ISLAMABAD: Pakistan on Wednesday kept the prices of petrol and high speed diesel (HSD) for next fortnight starting December 01, 2022.
However, the prices of kerosene oil and light speed diesel (LDO) reduced by Rs10 per liter and Rs7.5 per liter, respectively.
READ MORE: Pakistan to decide petroleum prices effective from December 01, 2022
Finance Minister Ishaq Dar in a press conference announced the revision in petroleum prices for the period December 01 to 15, 2022.
Previously, on September 30, 2022 the government made changes in petroleum prices.
READ MORE: Pakistan may impose petroleum tax to avert revenue shortfall
The new prices of petroleum products for next fortnight will be as follow:
The prices of petrol and HSD shall be Rs224.80 per liter and Rs235 per liter, respectively.
However, the rate of kerosene shall be reduced by Rs10 to Rs181.83 per liter from Rs191.83. Similarly, the price of LDO shall be reduced by Rs7.50 to Rs179 per liter from Rs186.50.
READ MORE: Petroleum prices in Pakistan for next fortnight effective from November 16, 2022
The benchmark Brent crude oil ended at $83.19 a barrel on November 28, 2022, having slumped more than 3 per cent to $80.61 earlier in the session for its lowest since January 4, 2022.
The Brent crude has hit above $120 per barrel during mid-June this year and now fell to the present level leaving ample room to the present government to revise downward the prices to provide relief the domestic consumers.
READ MORE: Petroleum prices in Pakistan effective from November 01, 2022
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Pakistan may impose petroleum tax to avert revenue shortfall
ISLAMABAD: Pakistan likely to impose tax on petroleum products to avert imminent shortfall in revenue collection.
Reports suggested that the Federal Board of Revenue (FBR) – the apex tax collecting agency of the country – is anticipating massive revenue shortfall in coming months due to no tax on petroleum products besides slowdown in economic activity.
Reportedly, the FBR may face about Rs500 billion as shortfall in the current fiscal year.
After the first quarter (July – September) 2022/2023, the FBR claimed to present extraordinary performance in revenue collection. “This performance in revenue collection is despite zero rating of Sales Tax on POL products, import compression and the prevailing situation of floods,” the FBR said in a press release.
READ MORE: Petroleum prices in Pakistan for next 10 days; what next?
Experts believed that the imposition of sales tax on petroleum products would increase the retail prices as well as result in high inflation.
At present the prices of petroleum products till November 30, 2022 are: price of petrol is Rs224.80 per liter; high speed diesel Rs235.30 per liter; kerosene oil Rs191.83; and light diesel oil Rs186.50 per liter.
In the latest review on November 15, 2022 the government decided to keep the prices unchanged for the fortnight ending November 30, 2022.
It was third straight announcement to keep the prices of petroleum products unchanged. Previously, on September 30, 2022 the government made changes in petroleum prices.
Experts said that the rise in petroleum prices were imminent in the next review as the government was under immense pressure from the IMF to impose sales tax on petroleum products.
At present the government adopted a policy to keep zero sales tax on petroleum products instead flat rate of 17 per cent. Furthermore, the government also committed to apply petroleum levy to generate more revenue for curtailing budget deficit.
READ MORE: Petroleum prices in Pakistan for next fortnight effective from November 16, 2022
Besides, the exchange rate is again showing a deterioration in rupee value against the dollar. The US dollar continued to make gain for seventh straight session against the Pakistani Rupee (PKR) on November 25, 2022 and reached PKR 223.94 in the interbank foreign exchange market.
The latest import data showed that the petroleum prices were on the higher sides as the country spent more money for import of lesser quantity of petroleum products.
The imports of petroleum products recorded a decline 1.75 per cent to $2.84 billion during July – October of fiscal year 2022/2023 as compared with $2.89 billion in the corresponding period of the last fiscal year.
However, import of petroleum crude recorded an increase of 6.61 per cent to $1.73 billion during the period under review as compared with $1.62 billion in the corresponding period of the last fiscal year.
Interestingly, quantities of both the segments fell 34.43 per cent and 23.26 per cent during the first four months of the current fiscal year, showing surge in prices of the international prices.
Although the present government has kept the prices during last three review under political pressure. But considering the present scenario of fiscal deficit and IMF pressure the government may take tough decision in coming days.
READ MORE: Petroleum prices in Pakistan effective from November 01, 2022
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Petroleum prices in Pakistan for next 10 days; what next?
ISLAMABAD: Following are petroleum prices in Pakistan during next 10 days will or November 30, 2022 if those are not changed earlier:
The price of petrol shall be Rs224.80 per liter; high speed diesel Rs235.30 per liter; kerosene oil Rs191.83; and light diesel oil Rs186.50 per liter.
The government likely to review petroleum prices on November 30, 2022 for next fortnight starting from December 01, 2022.
In the latest review on November 15, 2022 the government decided to keep the prices unchanged for the fortnight ending November 30, 2022.
READ MORE: Petroleum prices in Pakistan for next fortnight effective from November 16, 2022
It was third straight announcement to keep the prices of petroleum products unchanged. Previously, on September 30, 2022 the government made changes in petroleum prices.
Experts said that the rise in petroleum prices were imminent in the next review as the government was under immense pressure from the IMF to impose sales tax on petroleum products.
At present the government adopted a policy to keep zero sales tax on petroleum products instead flat rate of 17 per cent. Furthermore, the government also committed to apply petroleum levy to generate more revenue for curtailing budget deficit.
READ MORE: Petroleum prices in Pakistan effective from November 01, 2022
Besides, the exchange rate is again showing a deterioration in rupee value against the dollar. The US dollar continued to make gain for seventh straight session against the Pakistani Rupee (PKR) on November 21, 2022 and reached PKR 223.66 in the interbank foreign exchange market.
The latest import data showed that the petroleum prices were on the higher sides as the country spent more money for import of lesser quantity of petroleum products.
READ MORE: Pakistan keeps petroleum prices unchanged from October 16, 2022
The imports of petroleum products recorded a decline 1.75 per cent to $2.84 billion during July – October of fiscal year 2022/2023 as compared with $2.89 billion in the corresponding period of the last fiscal year.
However, import of petroleum crude recorded an increase of 6.61 per cent to $1.73 billion during the period under review as compared with $1.62 billion in the corresponding period of the last fiscal year.
READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022
Interestingly, quantities of both the segments fell 34.43 per cent and 23.26 per cent during the first four months of the current fiscal year, showing surge in prices of the international prices.
Although the present government has kept the prices during last three review under political pressure. But considering the present scenario of fiscal deficit and IMF pressure the government may take tough decision in coming days.
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Petroleum prices in Pakistan for next fortnight effective from November 16, 2022
ISLAMABAD: The government of Pakistan on Tuesday decided to keep the petroleum prices unchanged for next fortnight starting from November 16, 2022.
It was third straight announcement to keep the prices of petroleum products unchanged. Previously, on September 30, 2022 following changes in petroleum prices were announced:
The rate of petrol has been reduced by Rs12.63 per liter to Rs224.80 from Rs237.43.
READ MORE: Petroleum prices in Pakistan effective from November 01, 2022
The price of high speed diesel has been cut by 12.13 per liter to Rs235.30 from Rs247.43.
The rate of Kerosene oil has been slashed by Rs10.19 to Rs191.83 from Rs202.02.
The price of light diesel oil has been reduced by Rs10.78 to Rs186.50 from Rs197.28.
The government has taken the latest decision amid challenges including long march initiated by leading opposition party and rising benchmark Brent crude rates in international markets.
The present coalition government led by PML-N is under immense pressure since coming into power in April 2022. This government is mainly criticized for sky rocket prices of all essential items bringing inflation to record levels. The present government had opportunity to attract masses by lowering petroleum prices.
READ MORE: Pakistan keeps petroleum prices unchanged from October 16, 2022
On the other hand, Imran Khan, Chairman, Pakistan Tehreek I Insaaf (PTI) launched long march on October 28, 2022 from Lahore demanded the present government to announce general election as the country on the brink of default and masses were witnessing the brunt of high prices.
The present government has annoyed people through its last decision to keep the prices of petroleum products unchanged. Experts had opinion that the government had room to give benefit by slashing the prices.
Pakistan is the net importer of petroleum products to meet the domestic demands. Oil import bill of the country went up to $4.86 billion during first quarter (July – September) of the current fiscal year as compared with $4.59 billion in the corresponding quarter of the last year.
READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022
On the other hand the rupee once against started depreciation due to political instability and falling foreign exchange reserves. Although, the SBP recently received $1.17 billion from the International Monetary Fund (IMF) to buffer its foreign exchange reserves and support the local currency. Yet the scheduled repayment gradually dry to foreign exchange reserves position.
Most recently, the SBP again received $1.5 billion from the Asian Development Bank (ADB) to strengthen the foreign exchange reserves position. However, the repayment pressure and rising political noise the rupee unable to show resistance against the dollar.
The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.
READ MORE: Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates
However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.
The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.
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Pakistan petroleum prices to go up with sales tax imposition
The prices of petroleum products in Pakistan will go up with the imposition of sales tax, which presently at zero per cent.
Analysts AKD Research Tuesday stated that with the IMF consistently conveying concerns over possible shortfall on account of petroleum development levy (PDL), the government is looking towards a contingency plan by taking up additional taxation measures, for one, imposing full 17 per cent general sales tax (GST) on petroleum products.
READ MORE: SSGC stops gas supply to industries under load management plan
To note, sales tax collection from the previous fiscal year stood Rs107 billion, against Rs235 billion in the preceding fiscal year, reflecting a decrease of 54 per cent.
With petroleum products sales remaining robust during fiscal year 2021-2022, the halving of the collection was due to sales tax being effectively zero during the second half of the fiscal year, since mid-January more specifically.
READ MORE: Pakistan has sufficient stock of fuel to meet domestic demand
Assuming moderate 8 per cent imposition (Rs16-20 per liter) of sales tax on retail fuel products, the government could fetch additional around Rs30 billion revenue monthly at these rates.
Furthermore, the government is likely to take a major hit in the non-tax revenue department as well i.e. PDL as retail offtakes have continued to decline during first four months of the current fiscal year, down 22 per cent year on year (YoY).
READ MORE: ECC approves raising petroleum levy to Rs50 per liter on RON 95
Total collection during the four months were estimated at Rs115 billion against the budgeted target of Rs250 billion. To note, annual PDL collection target stands at Rs750 billion (Rs62.5 billion per month).
Assuming unchanged trends in POL offtakes and similar rates, total PDL collections will end the current fiscal year at Rs350 billion, an overall shortfall of Rs400 billion.
READ MORE: Petroleum sales decrease by 22% in four months of 2022-2023
The analysts further said that assuming the government pushes through by imposing further levies/taxes, although inflationary, this target may be more achievable now compared to five months ago, as falling global oil/petroleum prices has given the authorities more space to work with without severely hurting end consumers.
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Petroleum prices in Pakistan effective from November 01, 2022
ISLAMABAD: The government of Pakistan on Monday decided to keep the petroleum prices unchanged for next fortnight starting from November 01, 2022.
Finance Minister Ishaq Dar announced the decision to keep the prices unchanged for next 15 days.
“The government has decided to keep the prices of Petrol, High Speed Diesel, Light Diesel, and Kerosene Oil unchanged for next 15 days”, Ishaq Dar said.
It was second straight announcement to keep the prices of petroleum products unchanged. Previously, on September 30, 2022 following changes in petroleum prices were announced:
READ MORE: Pakistan keeps petroleum prices unchanged from October 16, 2022
The rate of petrol has been reduced by Rs12.63 per liter to Rs224.80 from Rs237.43.
The price of high speed diesel has been cut by 12.13 per liter to Rs235.30 from Rs247.43.
The rate of Kerosene oil has been slashed by Rs10.19 to Rs191.83 from Rs202.02.
The price of light diesel oil has been reduced by Rs10.78 to Rs186.50 from Rs197.28.
The government has taken the latest decision amid challenges including long march initiated by leading opposition party and rising benchmark Brent crude rates in international markets.
READ MORE: Pakistan sharply reduces petroleum prices from October 01, 2022
The present coalition government led by PML-N is under immense pressure since coming into power in April 2022. This government is mainly criticized for sky rocket prices of all essential items bringing inflation to record levels. The present government had opportunity to attract masses by lowering petroleum prices.
On the other hand, Imran Khan, Chairman, Pakistan Tehreek I Insaaf (PTI) launched long march on October 28, 2022 from Lahore demanded the present government to announce general election as the country on the brink of default and masses were witnessing the brunt of high prices.
The present government has annoyed people through its last decision to keep the prices of petroleum products unchanged. Experts had opinion that the government had room to give benefit by slashing the prices.
The experts believed that now the government would have fewer options to cut the prices of petroleum products due to rising global oil prices and depreciation in currency value at home.
Benchmark US Brent soared to $95.77 per barrel as of October 28, 2022. The commodity witnessed an increase of over $5 during the month of October 2022.
Pakistan is the net importer of petroleum products to meet the domestic demands. Oil import bill of the country went up to $4.86 billion during first quarter (July – September) of the current fiscal year as compared with $4.59 billion in the corresponding quarter of the last year.
READ MORE: Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates
On the other hand the rupee once against started depreciation due to political instability and falling foreign exchange reserves. Although, the SBP recently received $1.17 billion from the International Monetary Fund (IMF) to buffer its foreign exchange reserves and support the local currency. Yet the scheduled repayment gradually dry to foreign exchange reserves position.
Most recently, the SBP again received $1.5 billion from the Asian Development Bank (ADB) to strengthen the foreign exchange reserves position. However, the repayment pressure and rising political noise the rupee unable to show resistance against the dollar.
The previous government of PTI had kept both the petroleum levy and sales tax at zero in order to provide relief to the masses. The PTI government also provided a huge subsidy on prices of petroleum products in order to lower the rates and provide relief to the masses.
READ MORE: New petroleum prices in Pakistan effective from September 21, 2022
However, former Prime Minister Imran Khan was removed through a vote of no-confidence motion on April 10, 2022. Since then the new coalition government led by PML-N increased the prices of petroleum products sharply on three different occasions.
The present government in the budget estimated to collect Rs855 billion as petroleum levy during the fiscal year 2022/2023. As this fiscal year is starting from July 01, 2022, it is likely that the government will opt to impose the levy from this date.