Petrol Prices in Pakistan Expected to Increase From September 1

The coalition government is expected to increase the Petrol Prices in Pakistan from September 1 by imposing increased sales tax on these commodities in order to revive the stalled $6 billion International Monetary Fund (IMF) loan programme.

According to the details, the federal government is expected to increase the Petrol Prices in Pakistan by Rs. 20 per litre from September 1 by imposing increase sales tax in order to fulfil the pre-requisites of the International Monetary Fund (IMF) for restoration of their loan bailout package.

Furthermore, the government is also expected to abolish the sales tax exemption on petroleum products for the agriculture sector from next month, which is likely going to cause another wave of inflation in the country.

The concerned authorities are mulling to introduce 10.5% sales tax on petroleum products from October under the conditions set by the International Monetary Fund (IMF).

It is pertinent to mention that the Government has already removed subsidies from petroleum products in line with the instructions of the International Monetary Fund (IMF), which has created a wave of inflation in the country.

On August 15, the government had increased the Petrol Prices in Pakistan despite falling prices of crude oil in the international market as well as significant recovery of the Pakistani Rupee against the US Dollar (USD to PKR).

The Price of Petrol was increased by Rs. 6.72 per litre, while diesel price was slashed by merely Rs. 0.51 per litre. This brought the Price of Petrol in Pakistan at Rs. 233.91 per litre, Price of High-Speed Diesel to Rs. 244.44 per litre, Price of Kerosene Oil to Rs. 199.40 per litre and Light Diesel Oil (LDO) to Rs. 191.75 per litre.