Pakistan to Announce New Petroleum Prices on Feb 28

February 24, 2023

Pakistan is set to announce new prices of petroleum products on February 28, 2023, for the next fortnight amid rupee appreciation and sales tax rate hikes.

The new prices will be effective from March 01, 2023, and will remain applicable till March 15, 2023.

The government will consider the recent appreciation in the rupee value against the dollar. The local currency recorded a historic low of Rs276.58 to the dollar on February 03, 2023. However, after touching the lowest level the local currency recovered 6 percent or Rs16.59 to the dollar till the end of the market on February 23, 2023.

[Pakistan Announces
New Petroleum prices]

READ MORE:

Pakistan massively increases petroleum prices effective from February 16

In a statement on February 15, 2023, the finance division said that the price increase was due to the Pakistani Rupee (PKR) devaluation applicable for the calculation of the current pricing period.

The latest surge in petroleum prices is the second round as previously the government enhanced up to Rs35 per liter on January 29, 2023.

On the other hand, the importance of the scheduled announcement is that the country has already massively increased petroleum prices during the past two announcements, and yet it has not applied sales tax.

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Revision in petroleum prices on Feb 15 amid steep fall in PKR to the dollar

The normal rate of sales tax has been enhanced to 18 percent from 17 percent in the mini-budget, which was announced on February 15, 2023.

Experts said that in case of a sales tax levy on petroleum products, the government will further raise the prices.

The petroleum prices in Pakistan as of February 16, 2023, which will be applicable till February 28, 2023, are:

[Pakistan Announces
New Petroleum prices]


Petrol Rs272 per liter 

High Speed DieselRs280 per liter

Kerosene OilRs202.73 per liter

Light Speed Diesel OilRs196.68 per liter


The finance division on February 15, 2023, notified the new rates for the next fortnight, as applicable from February 16, 2023:

The petrol rate has been increased by Rs22.20 to Rs272 per liter from Rs249.80

High-Speed Diesel (HSD) rate has been increased by Rs17.20 per liter to Rs280 per liter from Rs262.80.

The rate of Kerosene oil has been enhanced by Rs12.90 to Rs202.73 per liter from Rs189.83.

The price of light diesel oil (LDO) has been increased by Rs9.68 to Rs196.68 from Rs187.

The government increased the prices up to Rs22.20 per liter in petroleum products.

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Pakistan approves sharp increase in gas prices for IMF bailout package

The country is facing an economic crisis-like situation and negotiating a bailout package with the International Monetary Fund (IMF), which was stalled for the past many months.

[Pakistan Announces
New Petroleum prices]
The government has also presented a mini-budget for generating additional as demanded by the IMF. Which may also include the imposition of sales tax on petroleum products.

Now the local authorities are hoping to finalize staff level agreement with the IMF for enabling the release of a tranche to the tune of $1.2 billion.

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Mini budget to be presented before parliament for approval: Dar

Experts believed that a storm of price hikes is inevitable after the changes made by the government to comply with the IMF conditions.