The federal government on Monday approved a hike in the price of petrol by Rs 4.53 per liter, and the price of diesel by Rs 8.14 per liter for the next fortnight.
According to the notification issued by the ministry of Finance, the petrol will be available at Rs293.94 per liter after the increase of Rs 4.53, while the High-Speed Diesel will be sold at Rs 290.38 per liter after an increase of Rs 8.14.
Starting on April 16, 2024, the new rates will be in effect for the upcoming two weeks.
According to earlier media reports, the country’s fuel costs would climb as a result of the recent war between Israel and Iran and an increase in the global market. The rising trend is maintained in spite of a minor improvement in exchange rates and a decline in import premiums. Prior to the most recent increase, the price of petrol and high-speed diesel increased by $4 and $4.50 a barrel, respectively, during the previous two weeks.
- IMF & Petrol Price in Pakistan
In addition, the nation is continually alarmed by the International Monetary Fund’s (IMF) suggestion to reinstate an 18% general sales tax (GST) on petrol as a requirement for the release of the last installment of its bailout package.
Additionally, there are hints that the government intends to raise the petroleum charge from 60 to 100 rupees. The Petroleum Development Levy has changed over the last few years; in fiscal year 2023, it increased significantly. The petroleum levy on gasoline was first imposed in July 2022 at a rate of Rs. 20 per litre. It was then increased to Rs. 50 per litre in November 2022 and then to Rs. 60 per litre until September 2023.
The maximum development levy that the government now levies on gasoline and diesel is Rs. 60 per litre. It may be raised, nevertheless, in accordance with the IMF’s new requirements for the release of fresh loan payments. When it comes to the price of petrol, Pakistan’s national and international circumstances are not very favourable.
Price increase affect on average citizen:
The everyday life of regular residents may be greatly impacted by the recent hike in petrol prices in Pakistan, where the price per litre has climbed to Rs. 293.94.
- Costs of Transportation:
Those who depend on their own cars or public transportation for transportation will have to pay more. Rising petrol prices have a direct impact on the cost of fuel for everyday transportation, such as errand running or commuting to work or school.
- Goods Transportation: There will be an increase in the price of moving products, such as food and supplies. This may result in increased costs for necessities, which would impact everyone’s budget.
- Living Standards and Inflation:
- Inflation: The general inflation rate is influenced by rising fuel prices. Businesses frequently raise prices for goods and services to pass on the expense of rising gasoline costs to customers.
- Budgets for households: Families will have to set aside more money for gasoline, which will leave less for other needs like food, healthcare, and education.
- Effect on Groups with Low Incomes:
- Vulnerable Populations: Those who are closest to the poverty line, daily wage workers, and low-income families will be the most affected. They spend a greater percentage of their earnings on fuel and other needs.
- Access to Healthcare and Education: For many citizens, greater transportation costs may make it more difficult to get to healthcare and educational services.
Everyone is impacted by the increase in petrol prices, although the effects differ according to lifestyle, occupation, and income level. The well-being of the populace and money generation must be balanced by policymakers.