Motorists and consumers may soon find relief at the pump as petrol and diesel prices are forecasted to decrease starting June 1st, 2024. This reduction comes as a result of a decline in international oil prices over the past fortnight.
According to reports, the federal government is poised to slash the price of petrol by Rs. 4.5 per liter and diesel by Rs. 4 per liter, providing a welcome respite for consumers grappling with high fuel costs.
During the review period, the Pakistani rupee remained stable at 278 against the dollar, contributing to a favorable outlook for local fuel prices.
With these adjustments, it is anticipated that the price of High-Speed Diesel (HSD) will drop to Rs. 270.08 per liter, while Motor Spirit (MS) rates are expected to decrease to Rs. 268.6 per liter across the country.
This prospective decrease follows the government’s recent initiative to lower petrol prices by Rs. 15.39 per liter and high-speed diesel by Rs. 7.88 per liter during the last fortnightly review on May 15th.
However, amidst these developments, there’s a buzz surrounding potential fiscal measures in the upcoming budget. The federal government is contemplating imposing a carbon tax on petroleum products or raising the petroleum levy threshold to Rs. 100 per liter. These deliberations come in response to pressure from the International Monetary Fund (IMF) to implement an integrated General Sales Tax (GST), aimed at harnessing the benefits of value-added tax (VAT) for documentation and digitization purposes.
As the nation eagerly awaits the implementation of revised fuel prices, the looming budgetary decisions may reshape the landscape of petroleum taxation and fiscal policies in the country.
