The federal budget for 2022–2023 has finally been agreed upon by the Pakistani government and the International Monetary Fund (IMF). The agreement was finalised via an online meeting between the Pakistani economic team and the IMF staff mission. The government agreed to raise an additional Rs. 436 billion in taxes as part of the accord. How will the IMF accord impact gas prices is the question we have?
Fuel prices as of today
Currently, a litre of gasoline costs Rs. 233.89.
The price of a litre of diesel right now is Rs. 263.31.
Price per litre for kerosene oil is Rs. 211.89.
Additionally, Light Diesel Oil is now costing Rs. 207.47 a litre.
First, let’s define what a gasoline subsidy is. In order to lessen the financial burden on the public, the government generally covers a little portion of the cost. The national exchequer suffers as a result of fuel subsidies, but consumers benefit.
The government eliminated the fuel subsidy it was providing during the most recent increase in fuel prices. In other words, as of right now, the government offers no subsidies at all for any petroleum goods, and consumers pay full price for fuel.
There will be no more consumer relief or gasoline subsidies.
The Petroleum Levy (PL) and the General Sales Tax are the two types of taxes the government levies on the sale of petroleum (GST). For all petroleum goods, both taxes are currently nil.
There are currently no taxes owed by the general population. In November 2021, the former prime minister Imran decreased the sales tax on purchases of fuel to zero. Later, the previous administration abolished the petroleum levy.
Fuel taxes will rise while fuel subsidies stay at zero. The government agreed to increase the petroleum duty by Rs. 50 per litre as part of the IMF accord. The government will eventually take up to Rs. 50 in addition to the monthly petroleum fee of Rs. 5. In short, there will be several increases in fuel prices