Today’s petroleum prices in Pakistan on March 05, 2023 is as following, which was recently announced to be applicable mid of this month:
| MS Petrol | Rs 267 per litre |
| High Speed Diesel | Rs 280 per litre |
| Kerosene Oil | Rs 187.73 per litre |
| Light Diesel Oil | Rs 184.68 per litre |
The above rates were announced on February 28, 2023 and applicable from March 01, 2023.
These rates will remain applicable till March 15, 2023.
READ MORE: High petroleum prices bring down oil sales by 21 pc
In the latest announcement the government reduced the prices of petroleum products. Sources said that due to recent sharp appreciation in rupee value during the period 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.
READ MORE: Dar announces cut in petroleum prices from March 01
Previously, 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.
However, the rupee again recorded massive deterioration against the greenback. During the week, the foreign exchange market remained highly uncertain. The rupee fell by Rs25.10 or 9.65 per cent against the dollar during February 27 – March 02 to make new all-time low of PKR 285.09. However, on March 03, the last trading day, the rupee recovered sharply and ended at PKR 278.46.
READ MORE: Pakistan unlikely jack up petroleum prices from March 01
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 petroleum prices are excluded sales tax as the government kept the levy at zero per cent to provide relief to the masses. But in case addition of sales tax a massive hike is inevitable.
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: Headline inflation to surge by over 30 pc in February 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.