Petrol price expected to rise by Rs10/litre in April
By
March 30, 2024
The government plans to hike petrol prices by as much as Rs10 per litre starting April 1, 2024, a move that might significantly affect how much ordinary people spend. This increase is linked to a rise in the premium, which has gone up from $12.15 to $13.507 per barrel, marking a $1.45 increase per barrel. If the government decides to pass on the full impact of this to the public before Eidul Azha, petrol prices could surpass those of high-speed diesel, jumping from Rs279.75 to Rs289.75 per litre. Additionally, there’s an expected Inland Freight Equalisation Margin of Rs5.01 per litre on petrol.
On the other hand, there’s a possibility of a slight decrease of Rs1.30 per litre in the price of high-speed diesel. This is because the premium on high-speed diesel remains at $6.50 per barrel, as observed in the last two reviews of petroleum products. The Inland Freight Equalisation Margin on high-speed diesel is anticipated to be Rs3.76 per litre.
Prices for kerosene oil and light diesel oil are expected to stay the same at Rs188.66 per litre and Rs168.18 per litre, respectively.
This increase in petroleum product prices is expected to happen without the proposed imposition of an 18% GST. However, if GST is implemented, petrol prices could rise by an additional Rs50 per litre. Currently, the government imposes a petroleum levy of Rs60 per litre, which makes up about 21.4% of the current petrol price.
An official from the Federal Board of Revenue (FBR) mentioned that there are currently no plans to impose a sales tax on petroleum, but estimated revenue from an 18% sales tax on petroleum products could range from Rs21 billion to 25 billion per month.
