Business

Petrol price in Pakistan expected to decrease by over Rs7/litre

Published

2 years ago

Farwa

Latest news about petrol price in Pakistan suggests rates to drop.
Diesel price expected to drop by Rs16.61 per litre, light diesel Rs10.87.
Govt apparently not in mood to raise petrol price, say oil industry officials.

KARACHI: The price of petrol in Pakistan may decrease by Rs7.24 per litre and diesel by Rs16.61 per litre in the next fortnightly review if the government passes on the impact of the retreating global market by not raising taxation, latest news about the rates suggest.

Oil industry data shows that all petroleum prices are showing a declining trend; however, it is not clear if the government will pass on the impact or offset it by raising taxation.

Industry calculations show that the ex-depot price of petrol has registered a Rs7.24 per litre decrease to Rs230.19 per litre for the next fortnight compared to the existing price of Rs237.43 per litre, The News reported.

The ex-depot price of diesel has decreased by Rs16.61 to Rs230.82 per litre for the next fortnight compared to the current price of Rs247.43 per litre.

The ex-depot price of light diesel reduced by Rs10.87 to Rs186.41 per litre for the upcoming fortnight compared to Rs197.28 per litre now.

The ex-depot price of kerosene declined by Rs14.20 to Rs187.82 per litre against Rs197.28 per litre currently.

The prices calculated by the oil industry are based on the existing taxation by the government.

The government is charging zero general sales tax (GST) on petroleum products where the rate of petroleum levy (PL) on petrol is Rs37.42 and on diesel Rs7.58 per litre.

Under the International Monetary Fund (IMF) conditions, the government has to raise the levy to Rs50 per litre on diesel and petrol to generate additional revenue to achieve the tax collection target for this fiscal.

According to the oil sector officials, the government apparently is not in a mood to increase the petroleum prices by raising the rate of levy or re-imposing GST after Ishaq Dar takes the help of the Finance Ministry.

“It seems that Dar would not be raising the price of petroleum products, at least for this fortnight to send out a message about his plan to provide relief to the masses as he had pledged to do so before taking the charge of the finance ministry,” a top oil firm official believed.

He said that Dar might pass the impact of the global downtrend or he could also decide to stick with the same if global markets further eased in the coming review of prices.

According to him, the average price of crude oil was around 91 dollars per barrel from September 16 to 28, whereas average prices of diesel and petrol were $115 and $81 per barrel respectively in the global market.

Business

Pakistan suffers a loss of millions due to inoperable airports.

Published

20 hours ago

Farwa

The Pakistani economy is strengthening and trending in the right direction, according to Federal Minister of Finance and Revenue Senator Muhammad Aurangzeb on Thursday.

Speaking at the Pakistan Saudi Arabia Business Forum, Aurangzeb stated that the goal of the government was to support the private sector rather than engage in commerce. His goal was to encourage business-to-business (B2B) trade and investment, thus he welcomed the delegation from Saudi Arabia.

Within the last 12 to 14 months, the minister saw a considerable improvement in macroeconomic stability. With the help of foreign exchange reserves sufficient to cover two months’ worth of imports, Pakistan steadied its currency, decreased its current account deficit to less than $1 billion, and produced a primary surplus.

Strong remittances, expanding exports, and a drop in inflation from 38% to 6.9% have all contributed to the consolidation of these benefits, according to Muhammad Aurangzeb. Companies have also profited from the insurance rate reduction.

Even if Pakistan’s credit rating has improved, more work needs to be done to bring it up to at least a B-. Both on the debt and equity sectors, he claimed, institutional flows were returning to the nation.

As the International Monetary Fund (IMF) board approved an extended program for the nation, the Islamabad Stock Exchange set a record high.

He stated that the IMF program will implement structural reforms in addition to ensuring macroeconomic stability for the long run.

The government of Pakistan remains committed to structural changes, sustainable growth, and tax reform, as stated by Muhammad Aurangzeb.

Business

Pakistan’s economy is getting better, according to Muhammad Aurangzeb

Published

20 hours ago

Farwa

The Pakistani economy is strengthening and trending in the right direction, according to Federal Minister of Finance and Revenue Senator Muhammad Aurangzeb on Thursday.

thus,Speaking at the Pakistan Saudi Arabia Business Forum, Aurangzeb stated that the goal of the government was to support the private sector rather than engage in commerce. His goal was to encourage business-to-business (B2B) trade and investment, thus he welcomed the delegation from Saudi Arabia.

As the International Monetary Fund (IMF) board approved an extended program for the nation, the Islamabad Stock Exchange set a record high.

He stated that the IMF program will implement structural reforms in addition to ensuring macroeconomic stability for the long run.

The government of Pakistan remains committed to structural changes, sustainable growth, and tax reform, as stated by Muhammad Aurangzeb.

Business

Remittances from Workers

Published

2 days ago

Farwa

In September of this year, the State Bank of Pakistan reported that remittances from overseas Pakistanis amounted to 2.8 billion dollars, reflecting a 29% increase compared to the remittances received in September of the previous year.

The SBP reports that, with a cumulative inflow of 8.8 billion US dollars in the first quarter of the financial year, workers’ remittances increased by 38.8 percent compared to the first quarter of the previous year.

Remittance inflows in September 2024 were primarily derived from Saudi Arabia at $681.3 million, the United Arab Emirates at $560.3 million, the United Kingdom at $423.6 million, and the United States of America at $274.9 million.