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How much petrol costs without govt taxes in Pakistan?

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Cricket Warrior

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Federal government is charging exorbitant taxes/other charges before refining and on the finished petroleum products.

As such, inflation-hit consumers are paying much more amount than the actual import and refining costs.

Petroleum products are a major source of revenue generation for the cash-strapped government and the public at large is the ultimate sufferer.

By keeping the petroleum products prices at the minimum possible level and looking for alternative revenue generation sources, the government can give a big relief to the masses. The reason is that petroleum prices affect all other necessities of life and sectors of the economy.

As per people relating to the petroleum sector and media reports, the actual price of petrol without taxes is about Rs161 and that of diesel is Rs166 per litre.

The petroleum products are being sold at its current price after addition of exorbitant taxes and other charges like petroleum development levy, rent, and distribution and dealer margins.

The overall taxes on petrol are to the tune of Rs91.36 and that on diesel Rs87.49 per litre.

Taxes on petrol and diesel before refining are Rs19.53.

Moreover, taxes levied on refined petrol are Rs71.83 per litre. The ex-refinery price of petrol is Rs181.70 per litre.

The taxes imposed on refined diesel are Rs67.96 per litre and the ex-refinery price of the product is Rs190.21 per litre.
 
Govt increases petrol price to record high


ISLAMABAD: The prices of petrol and diesel hit a record high on Tuesday, as the newly installed caretaker government raised fuel prices by up to Rs20 per litre, another second massive hike in a fortnight that is likely to further stoke inflation, which had cooled over the past two months.

The new petrol price will be Rs290.45 per litre from today (Wednesday) after an increase of Rs17.50 per litre, the finance division said in a notification. High-speed diesel would be even more expensive, with its price going up by Rs20 to Rs293.40 per litre.


The Ministry of Finance announced the revised prices late in the night after clearance from caretaker Prime Minister Anwaarul Haq Kakar, who was sworn in on Monday.


The finance division said prices of the two key fuels were raised because petroleum prices in the international market had increased during the last fortnight.


Petrol rate jumps Rs17.5 to cross Rs290; diesel rises to Rs293.4 after Rs20 increase

However, the government notification did not announce any change in the prices of kerosene and light diesel oil.

The latest jump in petroleum prices came on the heels of a similar hikes by the outgoing government on Aug 1. This means that fuel prices have jumped by nearly Rs40 per litre in just 15 days.

The price of high-speed diesel had previously peaked at Rs293 per litre in March this year. Its price is considered highly inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube wells and threshers and particularly adds to the cost of vegetables and other eatables.

Similarly, petrol prices had earlier peaked at Rs282 per litre in mid-April, but later declined to as low as Rs253. The product is mostly used in private transport, small vehicles, rickshaws and two-wheelers and directly affects the budget of middle- and lower-middle class citizens.


According to the latest data, inflation measured by the Consumer Price Index (CPI) basket of goods and services was 28.3 per cent for July — a little respite compared to 29.4pc in June and record 38pc in May but still far higher, particularly considering the high-base effect.

Finance ministry data shows the price of petrol (i.e. Rs290.45 per litre) now stands 24pc higher than what it was exactly a year ago (Rs233.91 in mid-August), and 35pc higher than its lowest point over the past year (Rs214.8 in mid-December).

At present, the general sales tax on all petroleum products is zero, but the government is charging a petroleum development levy of Rs55 per litre on petrol and Rs50 per litre each on HSD and high-octane blending component (HOBC) and 95 RON (research octane number) fuel.

The government is also charging about Rs18-22 per litre customs duty on petrol and high-speed diesel.

Petrol and high-speed diesel are major revenue spinners for the government, with their monthly sales touching about 700,000 to 800,000 tonnes compared to just 10,000 tonnes of monthly demand for kerosene
 
Petrol price likely to go up by Rs16 per litre

Amid a backdrop of ongoing economic challenges, including soaring inflation, rupee depreciation against the dollar, inflated utility bills, and escalating prices of essential commodities, Pakistan finds itself on the brink of another significant economic setback. The nation is preparing for a substantial increase in the price of petrol, projected to surge by up to Rs16 per litre starting from September 16.

The caretaker government had recently authorized price hikes for both petrol and diesel, propelling petrol prices to surpass the historic Rs300 per litre threshold for the first time in the country's history. This impending increase will further burden citizens, with the ex-depot price set to rise from the current Rs305.36 to Rs321.35 per litre.


Tribune
 
That’s still cheaper than in India when converted to INR.
 
even after the dollar has been decreased, no valid reason increasing the petrol prices now.
 
Last edited:
The caretaker government on Friday night pushed through another hike in the prices of petrol by Rs26.02 per litre and high-speed diesel (HSD) by Rs17.34 per litre.

The increase brings the price of petrol to Rs331.38 per litre while HSD is Rs329.18 per litre, the Ministry of Finance said in a post on X (formerly Twitter) after midnight.


Dawn
 
It is still ALOT cheaper than India lol. You guys are complaining for nothing, atleast in our eyes.
 
Actually many things in Pakistan are very expensive like electricity, which is very high compared to India. Everyone knows that with the rising of petrol and diesel price also electricity will become even more expensive, and this will also have an impact on the prices of other goods due to increased transportation and electricity costs.
 
JI threatens to bring Karachi to a standstill tomorrow if fuel prices not reduced.

KARACHI: Calling the current caretaker administration “a continuation of the legacy of the Pakistan Democratic Movement (PDM) government”, the Jamaat-i-Islami (JI) on Sunday announced to stage citywide protests on Tuesday (tomorrow) against the exorbitant rise in prices of petroleum products and growing inflation.

Addressing a press conference at the party’s headquarters Idara Noor-i-Haq, JI Karachi chief Hafiz Naeemur Rehman while sharing details of the plan of the protest said “it would be a different kind of activity” and appealed the Karachiitese to join the “struggle of the JI” for the accountability of the past and present rulers.

“I appeal the Karachiites for an all-out protest in the city on Tuesday by jamming all major arteries in the megalopolis,” he said. “Let it be very clear to our rulers — reduce the petroleum products prices or face the music.”

He said the caretaker government had increased the POL prices for the third time in just a single month. Raising the prices of petroleum products and electricity at a time when the US dollar had been losing its value was quite illogical.

DAWN
 
This protest will not make any difference because those who can reduce the price are getting free petrol, so they do not feel this issue of the public
 
That’s a very high price indeed. Can’t compare to Bharat as we are also earning more on an average. So the ratio of this hitting our pockets would be fractionally lower.

Non Oil countries must create their own bloc wherein we can increase market price of things we have a monopoly on for example spices. We have already make people all over the world crave for Butter Chicken Masala , we can use it to our advantage when they won’t have that masala.
 
That's a good point, however don't you think when talking about a country's dominances in context of energy and then comparison of monopolies in terms of different sectors, well monopoly is a strong word, lets say dominance or global influence, should be like something where India really has strong influence, which tbh are IT Services, film industry, pharmaceuticals, cricket (BCCI), now space as well etc. But sure...Butter chicken is something other countries who are exploring space and building sky scrapers can not make.
Bhaijaan said:
That’s a very high price indeed. Can’t compare to Bharat as we are also earning more on an average. So the ratio of this hitting our pockets would be fractionally lower.

Non Oil countries must create their own bloc wherein we can increase market price of things we have a monopoly on for example spices. We have already make people all over the world crave for Butter Chicken Masala , we can use it to our advantage when they won’t have that masala.
Click to expand...
 
Hassan A said:
That's a good point, however don't you think when talking about a country's dominances in context of energy and then comparison of monopolies in terms of different sectors, well monopoly is a strong word, lets say dominance or global influence, should be like something where India really has strong influence, which tbh are IT Services, film industry, pharmaceuticals, cricket (BCCI), now space as well etc. But sure...Butter chicken is something other countries who are exploring space and building sky scrapers can not make.
Click to expand...



Our pharma , IT etc sells because of being cost effective. We don’t have a monopoly on that.

But if Bharat and Pakistan jointly inflate prices of Butter chicken tikka masala , then the world will feel our wrath.
 
You are right in what you are saying, but the problem is that just to reduce each other's exports both countries offer lower export prices and others countries are taking advantage of this. If Pakistan and India have good relations then they can collaborate to set export prices for many things, such as basmati rice export prices etc
 
Bhaijaan said:
Our pharma , IT etc sells because of being cost effective. We don’t have a monopoly on that.

But if Bharat and Pakistan jointly inflate prices of Butter chicken tikka masala , then the world will feel our wrath.
Click to expand...
True, well as it so popular in the world, weaponizing butter chicken sounds really like an evil plan :LOL: totally agree on that.
 
Due to the improvement in the value of the rupee, the production cost of oil companies has decreased. This is because when the value of the rupee strengthens against other currencies, it reduces the cost of importing raw materials and equipment needed for oil production. As a result, oil companies can produce oil at a lower cost.

There is a possibility of a significant decrease in fuel prices. Diesel prices may decrease by 9.17 rupees, petrol prices by 11.98 rupees, and kerosene oil prices by 5.58 rupees.

On September 30th, the government will announce its final decision regarding the potential decrease in petroleum product prices.
 
340rp per litre as per PSO. I remember when I visited when IK was in power and paid just over 100 rupees per litre.
 
The caretaker government on Saturday slashed the price of petrol by Rs8 per litre and that of high-speed diesel by Rs11 per litre for the next fortnight.

According to a notification from the Ministry of Finance, the new price of petrol is Rs323.38 and Rs318.18 for HSD.

It said the price revision was due to the variations in the international prices of petroleum products and the improvement in the exchange rate.



www.dawn.com

In major relief, govt slashes petrol price by Rs8, HSD by Rs11

The new price of petrol is Rs323.38 and Rs318.18 for HSD; finance ministry says revision due to exchange rate improvement.
www.dawn.com
 
Fuel prices may undergo major dip from 16th

The prices of petrol and high-speed diesel (HSD) are expected to further decline significantly in Pakistan from October 16 after the reduction in the rates of petroleum products in the international market.

The global oil prices were on track on Friday to post their steepest losses in a week since March, after another partial lifting of Russia's fuel export ban compounded demand fears due to macroeconomic headwinds.

Oil prices have dropped by $7 per barrel in the global market. However, on Friday, Brent futures edged higher at 7 cents at $84.14 per barrel at 1522 GMT. US West Texas Intermediate (WTI) crude futures were up 4 cents at $82.35.

In the Gulf market, crude oil prices have fallen to $92 per barrel.

According to these rates, the prices of petrol and HSD in Pakistan should reduce by Rs22 and Rs20 per litre, respectively.

When converted from the rate of a dollar, the current price of a barrel of oil in Pakistan comes to around Rs26,220.


tribune.com.pk

Fuel prices may undergo major dip from 16th | The Express Tribune

Petrol, diesel rates likely to fall in wake of declining global oil costs
tribune.com.pk tribune.com.pk
 
The caretaker government on Sunday slashed the price of petrol by Rs40 per litre and that of high-speed diesel (HSD) by Rs15 per litre for the next fortnight.

According to a notification from the Ministry of Finance, the new price of petrol is Rs283.38 and Rs303.18 for HSD.

1697404161855.jpeg

It said the price revision was due to the variations in the international prices of petroleum products and the improvement in the exchange rate.

This is the second time in a row that the caretaker government is reducing petroleum prices after three fortnightly increases.



www.dawn.com

In major relief, govt slashes petrol price by Rs40, HSD by Rs15

The new price of petrol and HSD is Rs283.38 and Rs303.18, respectively.
www.dawn.com
 
Fuel prices may drop amid global market decline

ISLAMABAD: The prices of petrol and high-speed diesel (HSD) are expected to decline by Rs8 to Rs10 per litre each on Nov 15 for the next fortnight, mainly due to lower prices in the international market.

Informed officials said that the international prices of both HSD and petrol had fallen over the past two weeks. However, the rupee depreciated against the dollar during the same period, reducing the benefit of lower international prices for consumers.

For price calculations, officials said that HSD had become about $9 per barrel cheaper on average, down from about $113 to $104, during the week, while the price of petrol had dropped by a dollar from $91 to $90. The rupee, on the other hand, lost Rs6 in value against the dollar, declining from Rs280 to Rs286.

The government has already reached the maximum permissible limit of Rs60 per litre in petroleum development levy (PDL), as stipulated by the law. The government’s budget target is to collect Rs869 billion as PDL on petroleum products for the current fiscal year, in accordance with commitments to the International Monetary Fund (IMF). Despite a gradual increase in per litre rates on petrol and almost unchanged rates at Rs50 per litre for petrol in the first quarter of the fiscal year, the total PDL collection had exceeded Rs222bn in the first quarter ending Sept 30, 2023.

Petroleum and electricity prices have been the key drivers of high rate of inflation recorded at 27pc in October as measured by consumer price index and are expected to be reinforced by a massive hike in gas rates with effect from Nov 1.

Petrol, commonly used in private transport, small vehicles, rickshaws, and two-wheelers, directly impacts the budgets of the middle- and lower-middle class. Conversely, HSD price is considered highly inflationary, given its predominant use in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers. It notably contributes to the prices of vegetables and other eatables.

On Oct 31, the government had kept the petrol and HSD prices unchanged. Earlier, between Aug 15 and Sept 15, petrol and high-speed diesel prices had surged by Rs58.43 and Rs55.83 per litre, respectively, reaching a historic Rs331 to Rs333 per litre at the retail stage until Sept 30. Subsequently, rates for petrol and diesel were reduced by Rs52 and Rs26 per litre, respectively, in two cuts with effect from Oct 1 and 16.

Presently, the government is charging about Rs80 per litre tax on both petrol and HSD. Despite a zero general sales tax (GST) on all petroleum products, the government levies Rs60 per litre as PDL on both products.

Additionally, a Rs50 per litre charge is applied to high-octane blending component and 95RON petrol. Customs duty on petrol and HSD amounts to about Rs19-Rs21 per litre. Petrol and HSD serve as significant sources of revenue, generating monthly sales of approximately 700,000-800,000 tonnes per month, in stark contrast to the mere 10,000 tonnes of monthly demand for kerosene.
​
www.dawn.com

Fuel prices may drop amid global market decline

Diesel, petrol prices expected to decrease by Rs10 per litre.
www.dawn.com
 
Pakistan’s oil refining sector has languished without a major policy boost for three decades
Click to expand...

This became apparent when the new oil refining policy was developed for existing facilities. Recently greenlit by the government, this policy incentivises crude oil refineries to modernise and expand their plants, paving the way for producing more eco-friendly, Euro-V-compliant fuels.

The projected investments from the local refineries — estimated between $5 billion and $6bn — can lift Pakistan’s petrol and diesel production capacities, nearly doubling petrol output and increasing diesel volumes by 47 per cent. Meanwhile, the production of low-value furnace oil could decline by 78pc.

The ripple effects of this development are unmistakeably beneficial. Primarily, it positions Pakistan to significantly reduce expensive fuel imports. In fact, there might not be any need to import diesel since the local demand could be met with domestic production. This could result in substantial foreign exchange savings.

Furthermore, the projected investment could stimulate job creation and business activity within the refining sector and its ancillary industries. This might offer a welcome boost to both skilled and unskilled labour markets. Importantly, by modernising and expanding oil refineries, Pakistan could fortify its energy security, safeguarding against the supply disruptions and price surges in refined petroleum products that have impacted the country in recent years.

While it’s tempting to laud the architects of the oil refining policy, a closer examination reveals a stark backdrop of prolonged inertia in policy-making. The oil refining sector — pivotal to the nation’s energy security — has languished without a supportive policy framework for an extended period.

It has been nearly three decades since the sector received a major policy boost, since the introduction of the 1997 petroleum policy. In present times, the global energy landscape has undergone profound changes, yet our policy framework has remained stagnant.

Consequently, the absence of fresh investment in the crucial oil refining sector is hardly surprising. Over the years, this stagnation has led to a decline in the sector’s vitality, with capacity utilisation rates dwindling around 50pc to 60pc.

Furthermore, despite eventually becoming a focal point for policy deliberation, the journey of the refining policy to fruition was marked by considerable delays. Initially dubbed the “Oil Refinery Policy 2021”, its title hints at an introduction planned three years before its actual notification.

The policy navigated through numerous bureaucratic layers, from the glass surfaces of Cabinet Committee on Energy’s desks to the polished cupboards of the Petroleum Division — its passage prolonged by political instability.

Source: Dawn News
 

Petroleum dealers announce countrywide strike on 5th​

ISLAMABAD (Web Desk) – Petroleum dealers have announced a countrywide strike on July 5 (Friday) against the imposition of the advance tax in budget for next fiscal year 2024-25.

Pakistan Petroleum Dealers Association (PPDA) chairman Abdul Samad Khan made the announcement in a press conference, stating that all filling stations would observe shutdown across the country if the decision is not reversed by the government.

It is feared that there would be no availability of petrol and diesel in the country on Friday this week. It would disrupt transportation services in the country as they depend on these petroleum products to operate.

Abdul Samad Khan expressed concerns over the 0.5percent advance turnover tax included in the Finance Bill 2024-25.

He said that it would make it impossible for petrol pumps to operate. He asked the government to abolish it immediately otherwise “we are left with no option but to shutdown operations”.

The Finance Bill 2024-25, which was prepared under the watch of the International Monetary Fund (IMF), was approved by the National Assembly in late June.

Source: Dunya News
 
Petroleum dealers call off strike

The Pakistan Petroleum Dealers Association called off its nationwide petrol stations closure strike on Friday, the group’s chairman said.

“Today’s strike was highly successful, but our workers faced intimidation and threats,” Abdul Sami Khan, chairman of the Pakistan Petroleum Dealers Association (PPDA), said at a press conference in Karachi.

The announcement comes after several petrol pumps were closed in Karachi and Peshawar over the strike call against the government’s implementation of a 0.5% advance turnover tax on petroleum products. The association argued that the tax would place a significant burden on their businesses and has demanded its withdrawal.

The deadlock in negotiations prompted the association to call for a nationwide strike, with petrol pumps across the country closing their doors. While the strike was not observed in Islamabad due to the recent passing of the association’s vice president in Punjab, the association has confirmed that all petrol pumps across the country would remain closed until further notice.

The strike led to long queues at petrol stations across the country as motorists scrambled to fill their tanks before the pumps closed.

On Thursday, the Petroleum Division and the Oil and Gas Regulatory Authority assured the people that the country had a sufficient supply of petroleum products. OGRA spokesperson Imran Ghaznavi stated that all oil marketing companies have been instructed to ensure adequate supply to petrol stations and keep them open.

According to Sami, the strike was called off due to tourists who were facing problems “Tourists are facing major difficulties at the moment, and the association is now calling off the strike,” he said.

While acknowledging the challenges, he said the strike was not an easy decision, as the entire state and government were allegedly against it.

“This strike was not easy, the entire state and government were opposed to it,” he said and clarified that they have not backed down from their demands and would continue to pursue them.


AAJ News
 
Govt hikes petrol price by Rs1.35 per litre

The federal government on Thursday increased the petroleum prices for the next fortnight.

According to a notification issued by the Finance Ministry, the petrol price has been increased by Rs1.35 per litre, setting the new price at Rs248.38 per litre.

High-speed diesel price has gone up by Rs3.85 per litre, now priced at Rs255.14 per litre.

However, the kerosene price has been reduced by Rs1.48 per litre, with the new rate at Rs161.54 per litre.

Light diesel oil price has been slashed by Rs2.61 per litre, setting the new price at Rs147.51 per litre.

These revised rates will take effect from Nov 1, 2024.

Previously, the government maintained the petrol price but raised the price of HSD by Rs5 per litre on Oct 15.


Dunya News
 
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