There is a possibility of a massive increase in the prices of petroleum products in the country once again from April 1 as the government is likely to raise the price of petrol by Rs 10 per liter.
If the government increases the price of petroleum as per the IMF condition to increase the GST ratio then petrol per liter to be inflated by Rs50 per liter.
According to the media reports, even without GST, the price of petrol will increase by 10 rupees per liter due to two reasons. First, the premium on petrol has increased from $12.15 per barrel to $13.50. That is, $1.45 per barrel has increased. Another reason is that the inland freight margin is also being increased. As a result, the price of petrol may increase from 279.75 rupees to 289.75 rupees per liter.
On the other hand, the price of high-speed diesel is likely to decrease by Rs1.30 and the prices of kerosene and light diesel are likely to remain at 188.66 and 168.18 respectively.
Read more: Petrol and diesel prices likely to go up from April 1
As per the report, the price of petrol might increase to Rs50 per liter in case the government decides to apply 18% GST on it. According to recent reports, Pakistan has been asked by the IMF to raise petrol GST to 18%.
It should be noted that from 2022, the GST rate on petrol is going to be zero percent, which means that GST is not being collected. However, the government is receiving a petroleum development levy at the rate of 60 rupees per liter while import duty is also being imposed.
If the government agrees to impose GST the price of petrol will rise by Rs 50 and the price of diesel will rise by Rs 53 per liter.
Note that on 31 March, OGRA will publish the updated pricing and submit to the government a summary of the new petroleum prices.
