Petrol and diesel prices in Pakistan are expected to rise significantly from November 16, following the International Monetary Fund’s (IMF) proposal to impose a General Sales Tax (GST) on petroleum products and increase the Petroleum Development Levy (PDL) from Rs60 to Rs70 per litre. If the government agrees to these recommendations, the price hike will add to the financial strain on consumers already struggling with rising inflation.
Also Read: Petrol Prices in Pakistan Poised to Rise as IMF Advocates for New Taxes
The current petrol price in Pakistan, after the October 31 adjustment, is Rs248.38 per litre, and high-speed diesel (HSD) stands at Rs255.14 per litre. These increases reflect global oil prices and the government’s fiscal targets. Presently, petroleum products are exempt from GST, but with the IMF’s proposed measures, petrol and diesel prices could see a steep surge. This would be the second consecutive fortnightly adjustment in fuel prices under IMF-mandated reforms.
The potential rise in fuel prices is expected to impact transport costs, further driving inflation across multiple sectors. The government is negotiating with the IMF to stabilize the country’s economy, and the proposed tax measures aim to reduce fiscal deficits through enhanced revenue generation. However, these adjustments could deepen economic pressures on the public.
