Hours after the federal government unveiled a tax-laden ‘mini budget’, petrol prices shot up to historic highs in an attempt to placate the International Monetary Fund (IMF) to open a major debt tranche. have done.
The price of petrol has reached Rs 272 per liter after a hike of Rs 22.20, read a press release from the Finance Division on Wednesday night, saying the hike was due to depreciation of the rupee against the dollar. has happened
The Pakistani rupee has fallen sharply against the dollar since the local currency’s artificial cap was removed last month so that its value is decided by a market-based exchange rate.
The price of high speed diesel increased by Rs 17.20 to Rs 280 per litre. Kerosene will now be available at Rs 202.73 per liter after an increase of Rs 12.90. Meanwhile, light diesel oil will be available at Rs 196.68 per liter after an increase of Rs 9.68.
The new prices will be applicable from 12 PM tonight.
| Product | Existing prices w.e.f 29/1/2023 | New prices w.e.f 16/2/2023 | Increase |
| Petrol | 249.80 | 272 | 22.20 |
| High speel diesel | 262.80 | 280 | 17.20 |
| Kerosene | 189.83 | 202.73 | 12.90 |
| Light diesel oil | 187 | 196.86 | 9.68 |
A hike in the prices of petroleum products was one of the Washington-based lender’s preconditions, which would add to already record high inflation with new fiscal measures introduced through the ‘money budget’.
Katrina L, senior economist at Moody’s Analytics, predicted that inflation in Pakistan could average 33 percent in the first half of 2023, with only a bailout from the IMF likely to get the economy back on track. do not have.
Through the “mini budget”, the Pakistan Democratic Movement (PDM)-led federal government aims to reduce the budget deficit and widen the tax collection network.
The Federal Board of Revenue (FBR) has issued an SRO to raise the standard 17 percent general sales tax (GST) to 18 percent to collect tax of Rs 115 billion, while the remaining Rs 55 billion. will be achieved through other measures. Finance (Supplementary) Bill 2023 — or ‘Money Budget’.
