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  • Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates

    Pakistan reviews petroleum prices on Sept 30, 2022 amid crash in global rates

    Pakistan is set to review petroleum prices on September 30, 2022 for the next fortnight starting from October 01, 2022. The government will review the prices when the prices in international markets have been crashed to multi months low.

    According to Reuters news agency oil prices fell $2 a barrel a day earlier, settling at nine-month lows in choppy trade, pressured by a strengthening dollar as market participants awaited details on new sanctions on Russia.

    READ MORE: New petroleum prices in Pakistan effective from September 21, 2022

    Brent crude futures for November settled down $2.09, or 2.4 per cent, to $84.06 a barrel, plunging below levels reached on January 14. U.S. West Texas Intermediate (WTI) crude for November delivery dropped by $2.06, or 2.3 per cent to $76.71, the lowest since Jan. 6.

    Previously, the government revised the petroleum prices on September 21, 2022, which was scheduled to be announced on September 15, 2022.

    According to a statement issued by the Finance Division, the government decided to increase prices of petrol by Rs1.45 per liter to Rs237.43 from previous rate of Rs235.98.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    However, the government kept the price of high speed diesel (HSD) unchanged at Rs247.43 per liter.

    The price of kerosene oil has been reduced by Rs8.30 per liter to Rs202.02 from Rs210.32.

    Similarly, the rate of light diesel oil has been reduced by Rs4.26 per liter to Rs198.28 from previous rate of Rs201.54.

    It is pertinent to mention that the government to announce the prices of petroleum products in the wake of massive appreciation in rupee value as well. Besides, Ishaq Dar is also assuming the charge as finance minister. These factors would also impact the review.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    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.

    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.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    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.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    Pakistani Rupee (PKR) has plunged by PKR 20 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

  • New petroleum prices in Pakistan effective from September 21, 2022

    New petroleum prices in Pakistan effective from September 21, 2022

    Pakistan on Wednesday revised the prices of petroleum products that are effective from September 21, 2022.

    According to a statement issued by the Finance Division, the government decided to increase prices of petrol by Rs1.45 per liter to Rs237.43 from previous rate of Rs235.98.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    However, the government kept the price of high speed diesel (HSD) unchanged at Rs247.43 per liter.

    The price of kerosene oil has been reduced by Rs8.30 per liter to Rs202.02 from Rs210.32.

    Similarly, the rate of light diesel oil has been reduced by Rs4.26 per liter to Rs198.28 from previous rate of Rs201.54.

    The finance division said that in the wake of fluctuating global oil prices and exchange rate variation, the government had decided to revise the prices of petroleum products.

    The government review the prices of petroleum products every fortnight. The latest rate revision was scheduled for September 15, 2022 for the period starting from September 16, 2022.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    However, the government delayed the review which raises concerns amongst the stakeholders as many believed the government deliberately kept the price at higher side despite significant decline in global oil prices.

    A day earlier, Korangi Association of Trade and Industry (KATI) expressed concern over delay in revision of petroleum prices by the government.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    KATI President Salman Aslam expressed concern over the government’s delay in changing the prices of petroleum products.

    He said that there is a trend of continuous decline in oil prices in the global market, and the government should immediately announce a reduction in the price of petrol so that inflation and production costs can be reduced.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

  • KATI expresses concern over delaying revision in petroleum prices

    KATI expresses concern over delaying revision in petroleum prices

    Korangi Association of Trade and Industry (KATI) on Tuesday expressed concern over delay in revision of petroleum prices by the government.

    The revision in petroleum prices was scheduled for September 15, 2022, which was to be implemented from September 20, 2022. It is learnt that the authorities had recommended reduction in prices for the fortnight starting from September 16, 2022.

    READ MORE: KATI sends 2nd batch of relief goods for flood victims

    KATI President Salman Aslam expressed concern over the government’s delay in changing the prices of petroleum products.

    He said that there is a trend of continuous decline in oil prices in the global market, and the government should immediately announce a reduction in the price of petrol so that inflation and production costs can be reduced.

    READ MORE: KATI flays imposition of new taxes

    Aslam welcomed the Saudi government’s decision of a one-year extension of $3 billion to stabilize Pakistan’s foreign exchange reserves. He said that Saudi Arabia is Pakistan’s best friend and has helped Pakistan in difficult times in the past. With this decision, Pakistan’s foreign exchange reserves and economic stability in the country will be possible.

    READ MORE: KATI rejects further petroleum price hike in Pakistan

    He hoped that the government will solve the problems faced by the industrialists so that the production process in the country can be accelerated and the economy can travel towards development.

  • Today’s petroleum prices in Pakistan

    Today’s petroleum prices in Pakistan

    ISLAMABAD: Petroleum prices in Pakistan are remained same at the level announced earlier this month as the government has not revised the prices as scheduled.

    Today’s prices as on September 20, 2022 is the same as announced and effective on September 01, 2022 as the government had not revised the prices which were scheduled on September 15, 2022 and effective on September 16, 2022.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    Therefore, today’s prices of petroleum products in Pakistan are:

    The price of petrol is Rs235.98 per liter.

    The price of high speed diesel is Rs247.43 per liter.

    The rate of kerosene oil is Rs210.32 per liter.

    The price of light diesel oil is Rs201.54 per liter.

    The country reviews domestic oil prices after every 15 days to adjust rise and fall of prices in the international market and changes occurred in the exchange rates.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    Experts believe that Pakistan may increase the petroleum prices for the fortnight because of massive decline in rupee value during past 15 days besides the expected imposition of sales tax and further increase in petroleum levy.

    The government on August 31, 2022 decided to increase the prices of petroleum products effective from September 01, 2022. The decision was strongly criticized by the stakeholders because the international markets had seen fall in oil prices.

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    The benchmark Brent crude is below $100 dollars. Brent crude futures were at $92.84 per barrel in New York trade on September 09, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    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.

    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.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    Pakistani Rupee (PKR) has plunged by PKR 20 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

    The exchange rate was Rs218.75 to the dollar on August 31, 2022, the day when the money was received by Pakistan. However, since then the rupee fell by PKR 20 to Rs239 to the dollar on September 20, 2022 in midday interbank foreign exchange market.

  • Latest petroleum prices in Pakistan

    Latest petroleum prices in Pakistan

    ISLAMABAD: Pakistan was scheduled to review the petroleum prices on September 15, 2022. The revision in prices requires approval from the prime minister, who is attending two-day conference of Shanghai Cooperation Organization (SCO).

    There is no official announcement in this regard or delay in updating the prices of petroleum products.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    The latest prices of petroleum products in Pakistan, which was implemented on September 01, 2022 were:

    The price of petrol has been increased by Rs2.07 per liter to Rs235.98 from Rs233.91.

    The price of high speed diesel has been increased by Rs2.99 per liter to Rs247.43 from Rs244.44.

    The rate of kerosene oil has been raised by Rs10.92 per liter to Rs210.32 from Rs199.40.

    The price of light diesel oil has been increased by Rs9.79 per liter to Rs201.54 from Rs191.75.

    The country reviews domestic oil prices after every 15 days to adjust rise and fall of prices in the international market and changes occurred in the exchange rates.

    Experts believe that Pakistan may increase the petroleum prices for the fortnight because of massive decline in rupee value during past 15 days besides the expected imposition of sales tax and further increase in petroleum levy.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    The government on August 31, 2022 decided to increase the prices of petroleum products effective from September 01, 2022. The decision was strongly criticized by the stakeholders because the international markets had seen fall in oil prices.

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    The benchmark Brent crude is below $100 dollars. Brent crude futures were at $92.84 per barrel in New York trade on September 09, 2022.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    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.

    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.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    Pakistani Rupee (PKR) has plunged by Rs9.43 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

    The exchange rate was Rs218.75 to the dollar on August 31, 2022, the day when the money was received by Pakistan. However, since then the rupee fell by Rs9.43 or 4.31 per cent to Rs228.18 to the dollar on September 09, 2022 in interbank foreign exchange market.

  • Pakistan to review petroleum prices on September 15, 2022

    Pakistan to review petroleum prices on September 15, 2022

    ISLAMABAD: Pakistan is likely to review petroleum prices on Thursday September 15, 2022 for the next fortnight starting from September 16, 2022.

    The country reviews domestic oil prices after every 15 days to adjust rise and fall of prices in the international market and changes occurred in the exchange rates.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    Experts believe that Pakistan may increase the petroleum prices for the fortnight starting from September 16, 2022 because of massive decline in rupee value during past 15 days besides the expected imposition of sales tax and further increase in petroleum levy.

    The government on August 31, 2022 decided to increase the prices of petroleum products effective from September 01, 2022. The decision was strongly criticized by the stakeholders because the international markets had seen fall in oil prices.

    The finance division notified the new prices of petroleum products with effect from September 01, 2022.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    The price of petrol has been increased by Rs2.07 per liter to Rs235.98 from Rs233.91.

    The price of high speed diesel has been increased by Rs2.99 per liter to Rs247.43 from Rs244.44.

    The rate of kerosene oil has been raised by Rs10.92 per liter to Rs210.32 from Rs199.40.

    The price of light diesel oil has been increased by Rs9.79 per liter to Rs201.54 from Rs191.75.

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    The benchmark Brent crude is below $100 dollars. Brent crude futures were at $92.84 per barrel in New York trade on September 09, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    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.

    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.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    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.

    The exchange rate has seen massive decline in rupee value during past week despite inflows received from the International Monetary Fund (IMF).

    Pakistani Rupee (PKR) has plunged by Rs9.43 against the US dollar since the country received tranche from the International Monetary Fund (IMF). The country received a tranche of $1.16 billion from the IMF under Extended Fund (EFF) loan program on August 31, 2022.

    The government was hopeful of improvement in economic indicators once the money is received from the IMF. However, in contrast the PKR fell sharply since the IMF funds transferred to the State Bank of Pakistan (SBP).

    The exchange rate was Rs218.75 to the dollar on August 31, 2022, the day when the money was received by Pakistan. However, since then the rupee fell by Rs9.43 or 4.31 per cent to Rs228.18 to the dollar on September 09, 2022 in interbank foreign exchange market.

  • Pakistan raises petroleum prices by 100% in one year

    Pakistan raises petroleum prices by 100% in one year

    ISLAMABAD: Pakistan has increased prices of petroleum products by around 100 per cent during past one year, according to official data released on Friday.

    According to data released by Pakistan Bureau of Statistics (PBS), the price of petrol was increased by 99 per cent to Rs236.98 per liter by week ended September 08, 2022 as compared with Rs119.25 per liter by week ended September 09, 2021.

    READ MORE: New petroleum prices in Pakistan from September 01, 2022

    Similarly, the price of high speed diesel (HSD) recorded a massive increase of 114 per cent to Rs248.40 per liter by week ended September 08, 2022 when compared with Rs116 per liter by week ended September 09, 2021.

    The PBS issued weekly Sensitive Price Indicator (SPI) based inflation details.

    The year on year trend depicts an increase of 42.70 per cent. The items have witnessed increase in prices are included: Tomatoes (144.25 per cent), Diesel (114.08 per cent), Petrol (98.73 per cent), Pulse Masoor (76.34 per cent), Cooking Oil 5 litre (67.99 per cent), Mustard Oil (66.53 per cent), LPG (64.98 per cent), Washing Soap (64.50 per cent), Electricity for Q1 (63.03 per cent), Vegetable Ghee 2.5 Kg (62.53 per cent), Pulse Gram (61.02 per cent), Onions (59.97 per cent) and Vegetable Ghee 1 Kg (58.19 per cent).

    READ MORE: Pakistan’s headline inflation hits 47-year high in August 2022

    While a decrease observed in the prices of Chillies Powder (43.42 per cent), Sugar (18.07 per cent) and Gur (2.08 per cent).

    The SPI for the current week ended on September 08, 2022 recorded a decrease of 0.58 per cent. Decrease is observed in the prices of food items, Onions (41.99 per cent), Tomatoes (8.11 per cent), Bananas (2.51 per cent), Pulse Masoor (1.37 per cent), Vegetable Ghee 1Kg (0.55 per cent), Cooking Oil 5 litre (0.33 per cent), Mustard Oil (0.16 per cent) and Vegetable Ghee 2.5Kg & Sugar (0.11 per cent) each.

    READ MORE: Pakistan’s sensitive price inflation surges by 45%

    On the other hand, an increase observed in the prices of LPG (10.66 per cent), Wheat Flour (4.15 per cent), Eggs (3.96 per cent), Bread (3.27 per cent), Pulse Moong (2.74 per cent), Curd (2.72 per cent), Tea Lipton (2.50 per cent), Pulse Gram (1.65 per cent), Chicken (1.58 per cent), Milk Fresh (1.57 per cent), Fire wood (1.54 per cent) and Potatoes (1.02 per cent).

    During the week, out of 51 items, prices of 26 (50.98 per cent) items increased, 09 (17.65 per cent) items decreased and 16 (31.37 per cent) items remained stable.

    READ MORE: Pakistan’s sensitive price inflation surges by 37.67%

  • New petroleum prices in Pakistan from September 01, 2022

    New petroleum prices in Pakistan from September 01, 2022

    ISLAMABAD: Pakistan on Wednesday announced increase in prices of all petroleum products. These prices are implemented with effect from September 01, 2022.

    The finance division notified the new prices of petroleum products with effect from September 01, 2022.

    The price of petrol has been increased by Rs2.07 per liter to Rs235.98 from Rs233.91.

    The price of high speed diesel has been increased by Rs2.99 per liter to Rs247.43 from Rs244.44.

    READ MORE: Pakistan to increase petroleum prices from September 01, 2022

    The rate of kerosene oil has been raised by Rs10.92 per liter to Rs210.32 from Rs199.40.

    The price of light diesel oil has been increased by Rs9.79 per liter to Rs201.54 from Rs191.75.

    It is important to note that the government revised the prices in the wake of falling international oil prices and massive recovery in rupee value.

    The sources said that the government was striving to get loans under the Extended Fund Facility (EFF) from the International Monetary Fund (IMF). The government met all the conditions and received $1.16 billion from the IMF after it’s executive board accorded approval on August 29, 2022.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    The benchmark Brent crude is about $100 dollars. Brent crude futures were at $97.40 per barrel in New York trade on August 10, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    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.

    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.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022

  • Pakistan to increase petroleum prices from September 01, 2022

    Pakistan to increase petroleum prices from September 01, 2022

    ISLAMABAD: Pakistan is likely to increase prices of petroleum products from September 01, 2022 due to expected imposition of sales tax and petroleum levy.

    Besides, international oil prices are also seeing upward movement, sources said on Friday.

    The federal government will announce the revised prices of petroleum products on August 31, 2022 for next fortnight effective from September 01, 2022.

    Previously, the federal government on August 15, 2022 and revised upward the rate of petrol effective from August 16, 2022.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    According to the sources the government had kept the sales tax rate at zero per cent on petroleum products. The prevailing normal sales tax rate is 17 per cent. If the government implements the normal sales tax rate then the prices of petroleum products will witness massive rise.

    The finance division issued following new prices effective from August 16, 2022:

    The price of petrol was increased by Rs6.72 per liter to Rs233.91 from Rs227.19.

    The rate of high speed diesel (HSD) was nominally reduced by 51 paisas to Rs244.44 from Rs244.95.

    The price of kerosene oil decreased by Rs1.67 to Rs199.40 from Rs201.07.

    The rate of light diesel oil (LDO) was nominally enhanced by 43 paisas to Rs191.75 from Rs191.32.

    A press release issued by the finance division stated that in the wake of fluctuations in petroleum prices in the international market and exchange rate variation, the government had decided to revise the existing prices of petroleum products to pass on the impact to the consumers.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    It is important to note that the government revised the prices in the wake of falling international oil prices and massive recovery in rupee value.

    The sources said that the government is striving to get loans under the Extended Fund Facility (EFF) from the International Monetary Fund (IMF). Almost all the conditions have been met and the government is hoping the executive board of the IMF would release an amount of $1.17 billion through an approval at a meeting scheduled for August 29, 2022.

    The sources said that the government would impose sales tax on petroleum products in order to fulfill requirements under the IMF program.

    Pakistan is a net importer of petroleum products so huge foreign exchange is required for paying against foreign purchases and meeting local demand.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022

    The country has spent a staggering amount of $23.32 billion for the import of petroleum group during fiscal year 2021/2022 as compared with $11.36 billion in preceding year, showing a growth of 105 per cent. The import of finished products recorded an increase of 134 per cent to $12.07 billion during the fiscal year 2021/2022 as compared with $5.16 billion in the preceding fiscal year.

    The benchmark Brent crude is about $100 dollars. Brent crude futures were at $97.40 per barrel in New York trade on August 10, 2022.

    The present government had started increasing the petroleum prices on May 26, 2022 when the benchmark Brent Oil was at $112 per barrel.

    Considering the price slump of international oil, the government had reduced the prices of petroleum products from July 15 to July 31. However experts believed it was a political decision as the government had to increase petroleum levy and apply sales tax.

    READ MORE: New prices of petroleum products in Pakistan from July 01, 2022

    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.

    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.

  • KATI rejects further petroleum price hike in Pakistan

    KATI rejects further petroleum price hike in Pakistan

    KARACHI: Korangi Association of Trade and Industry (KATI) on Thursday strongly rejected any further increase in prices of petroleum products in Pakistan.

    KATI President Salman Aslam in a statement expressed concern over Federal Minister of Finance Miftah Ismail’s indication of a further increase in the prices of petroleum products.

    READ MORE: Businessmen express shock over petroleum price hike in Pakistan

    He said that the federal minister has asked to increase the petrol levy by Rs10 from September 1, 2022 up to Rs50 per litre, which will be very harmful to the economy.

    The prices of petrol in the global markets have reached the lowest level in 5 years, while the cost of the dollar has also decreased by more than Rs30 in the past few days. In this case, the increase in the prices of petroleum products by justifying the IMF agreement is not acceptable.

    READ MORE: SBP assures allowing stuck up containers of banned import

    Salman Aslam said that his party leadership is also unhappy with the Finance Minister’s decision, while the government’s allies are also not supporting this initiative as it will increase inflation instead of being controlled.

    He said that the finance minister has expressed his commitment to reducing inflation, but that it is not possible unless petroleum products and utility prices are reduced. It is impossible to control inflation or inflation due to the cost of production.

    READ MORE: Sindh reduces sales tax on services for IT sector: SRB

    President KATI said that the government does not consult or trust the business community before setting terms with the IMF, due to which government decisions affect the country’s economy.

    Salman Aslam said that the government had already increased the price of electricity in the last few days, after which there was no justification for increasing the prices of petroleum products.

    He appealed to the government to immediately withdraw the increase in the prices of petroleum products and keep the petroleum levy at a minimum level.

    He said that the finance minister’s statement creates a chaotic situation among investors and stakeholders, directly affecting the country’s stock market and investments.

    READ MORE: FPCCI demands SBP to check speculative dollar trading