New Year Surprise: Govt Increases Petrol Price in Pakistan
Pakistan increase petrol prices slightly for January 2025. New rates impact transport, goods costs. Govt cites global oil trends; no GST on fuel yet
The federal government has slightly increased fuel prices in Pakistan for the first two weeks of January 2025. The new rates will start on January 1, 2025, as announced by the Ministry of Finance on December 31, 2024.
New Fuel Prices
The changes were decided after discussions between the Petroleum Ministry, Finance Ministry, and the Prime Minister.
Reasons for the Revision
The government attributed the price hike to fluctuations in global crude oil prices and domestic economic conditions. Global oil market premiums, currently at $8.69 per barrel, have contributed to the upward adjustment in domestic rates.
Impact on the Economy
Fuel price changes directly affect transportation and production costs, leading to a downward effect on the prices of essential goods. In particular, the increase in diesel prices is expected to impact goods transport and agriculture, adding to inflationary pressures.
Future Considerations
Discussions are ongoing about implementing an 18% general sales tax (GST) on petroleum products and raising the Petroleum Development Levy (PDL) from Rs. 60 to Rs. 70 per liter. However, no official announcement has been made. As of now, fuel prices in Pakistan remain exempt from GST.
Conclusion
As the New Year begins, the slight increase in fuel prices adds to the financial challenges for many people. The government says it
