ISLAMABAD: Petroleum products are set to become expensive with effect from July 1 because of not only higher prices in the international market but also the possible increase in taxes as the government is aiming at boosting revenue collection albeit through indirect taxation which directly impacts the ordinary people instead of wealthier influential classes already enjoying a long list of exemptions.
It is believed that the petrol prices will jump by Rs8 per liter. However, the high-speed diesel prices are expected to witness an even bigger hike of Rs10, as higher transportation costs will sustain inflation and further reduce purchasing power, thus worsening the existing cost of living crisis and maintaining higher business costs.
Calculations indicate that kerosene prices would increase by Rs9.
The impending hike in fuel costs will follow four consecutive fortnightly price reductions. According to sources, the price of gasoline and diesel has risen by roughly $4.4 and $5.5 per barrel, respectively, on the global market.
The petroleum development levy (PDL), which was raised in the Finance Bill 2024 from the current rate of Rs60 to Rs80 per liter, is the weapon to be used when it comes to taxation.
The PDL would, however, be raised progressively by the pricing trend, so consumers would not see the effects right away.
