Islamabad (TDI): The federal government is likely to increase diesel and petrol prices in Pakistan next month, due to fluctuations in international oil markets.
As per reports, the Petrol price is likely to go up by Rs3 per litre and diesel by Rs2.9 per litre starting December 1, 2024.
As of now, petrol is available at Rs248.38 per litre, and diesel at Rs255.14 per litre. The introduction of the sales tax will impact these rates, potentially leading to higher transportation costs and increased inflation.
Read More: Lahore, Other Cities Could Run Out of Petrol, Diesel: PSO
Another factor likely to govern fuel prices next month is the government’s strategy to meet financial targets under the International Monetary Fund (IMF) programme through the imposition of a new sales tax.
As per the report, the government plans to impose an 18 percent sales tax on fuel to replace the existing petroleum levy fixed at Rs15 per litre.
Read More: Pakistan Increases Petrol, Diesel Prices
Reportedly, the government had proposed introducing a 1-2 percent tax, which the IMF rejected and urged the government to go for higher rates to achieve financial targets.
The move will help the government secure international funding and support for large-scale refinery upgrade projects worth $5-6 billion.
