The government is anticipated to announce another reduction in petroleum prices, potentially up to Rs12 per litre, starting from June 15.
Sources indicate that due to a $5.14 per barrel decline in global oil prices, there’s a chance petrol prices in Pakistan could see a significant Rs12 per litre reduction.
It’s notable that since April 16, petrol prices have already decreased by Rs24 per litre, with diesel prices also seeing a Rs20 per litre reduction.
Insider sources revealed that on June 1, a sudden reversal in the government’s stance on petrol prices late at night stemmed from a disagreement between the prime minister and the finance minister. The finance minister urged reconsideration of the decision amidst discussions with the IMF.
With petroleum development levy collections exceeding Rs900 billion, surpassing the full-year target of Rs869 billion in just 11 months of the current fiscal year, the government seems poised for substantial revenue.
As demand for petroleum products soared to a nine-month high of 1.4 million tons in May 2024 following price reductions, total consumption reached 13.8 million tons in July-May 2023-24, according to findings from Topline Research.
Topline Research analyst Myesha Sohail reported that tax collection through PDL amounted to Rs907 billion in 11 months of FY24, suggesting the government could potentially realize between Rs990 billion to Rs1 trillion, given a monthly average of Rs80-85 billion.
