Petrol price is likely to increase by Rs 25/liter from Feb1

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ISLAMABAD:  The Ministry of Finance is likely to jack up the prices of petroleum products in the upcoming fortnightly review to meet one of the conditions of the International Monetary Fund (IMF), however the real impact of recent PKR’s devaluation will be seen in the next fortnight review due on Feb 15.

In the upcoming fortnightly review next week, the price of diesel would likely jump by Rs25, The News reported on Saturday.

If the government increased the petroleum levy (PL) to Rs50 per liter on diesel, which seems likely to meet the IMF condition, the price could jump further and the general sales tax (GST) inclusion even on 10% would be pushing the price much higher.

Meanwhile, the hike in petrol price would likely be around Rs20-21. The government has been charging Rs50 per liter PL on petrol and slapping even 10% GST would be costing the consumers dearly in the coming fortnightly review of prices.

It should be noted that the sharp decline in the value of the rupee relative to the US dollar over the past two days would not have a significant impact on the review due on January 31 (Tuesday), as the average exchange rate would be Rs240, according to data gathered from the country’s oil sector.

However, it was discovered that a considerable increase in domestic petroleum costs as a result of rupee depreciation would be reflected in the fortnightly review that was due on February 15.

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