Pakistan is contemplating a significant reduction in the prices of petroleum products, offering relief to consumers starting October 1st, 2023. This potential decrease in fuel prices is attributed to the government’s efforts to combat illegal activities and streamline the economy.
Under the proposed plan, the price of petrol could drop by Rs15 per litre, with high-speed diesel seeing a reduction of Rs10 per litre. Additionally, the price of light diesel oil may see a decrease of Rs12 per litre, while kerosene could become more affordable with an expected Rs8 per litre reduction. The ultimate decision will be made by the Prime Minister, in consultation with the Finance Ministry.
Currently, the government imposes a levy of Rs.60 per litre on petrol and Rs.50 per litre on diesel. Moreover, approximately Rs22 to Rs23 per litre in duty is levied on petrol and diesel. Caretaker Finance Minister Dr. Shamshad Akhtar disclosed these potential changes during a briefing on the nation’s economic situation to the Senate Standing Committee on Finance.
Dr. Shamshad Akhtar emphasized that Pakistan’s economic challenges stem from expenditure exceeding income. The nation cannot sustain the burden of Rs 1,300 billion in tax exemptions, she stated. She also stressed the necessity of implementing capital gains tax on immovable assets.
Furthermore, the minister provided an optimistic outlook for the country’s economy, highlighting that the exchange rate has stabilized, with the dollar now valued at Rs 288. Remittances have surged, and the ban on imports has been lifted, indicating a positive trajectory for Pakistan’s financial landscape.
These potential reductions in petrol and diesel prices come as welcome news for the citizens of Pakistan, offering hope for more affordable transportation and decreased living costs. The final decision on these proposed changes awaits the Prime Minister’s approval, and if implemented, they are expected to have a positive impact on the nation’s economy and the daily lives of its people.