Sharp Rise Expected in MS Petrol and High-Speed Diesel Prices at Fiscal Year-End
On the last day of the current fiscal year, the federal government is expected to significantly increase the prices of MS petrol and High-Speed Diesel (HSD). Petrol prices are anticipated to rise by Rs. 7 per liter, while diesel prices could see an increase of Rs. 10.5 per liter on June 30, 2024.
In the Finance Bill 2024, the government has proposed raising the petroleum development levy (PDL) on petrol and high-speed diesel to Rs. 80 per liter. However, this increase in PDL will be implemented in phases starting from July 1, 2024, rather than immediately. Despite the phased approach, market trends suggest that further relief in the next fiscal year might be unlikely.
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Due to the observed trends in the current fortnight and the impact of the new taxes, the price of MS petrol is expected to rise to Rs. 265.16 per liter, while the price of diesel could increase to Rs. 277.89 per liter, up from the current rate of Rs. 267.89 per liter.
It is worth noting that the Pakistani Rupee has remained stable at 278/$ during the current fortnight.
