Petrol, Diesel Prices Likely to Fall One More Time Before Budget

MS petrol and High-Speed Diesel (HSD) prices are expected to fall next week due to international oil prices declining in the current fortnight. The federal government is expected to decrease the price of petrol and diesel by Rs. 4.5 per liter and Rs. 4 per liter each on May 31, 2024. The Pakistani rupee remained stable at 278 during the period in review. Considering the above, it is expected that the price of HSD is poised to decrease to Rs. 270.08 per liter in Pakistan. Meanwhile, MS rates are expected to fall to Rs. 268.6 per liter. At the last fortnightly review of petroleum prices on May 15, the government decreased the price of petrol by Rs. 15.39 per liter. The price of high-speed diesel was decreased by Rs. 7.88 per liter. It bears mentioning that the federal government is considering a move to levy a carbon tax on petroleum and similar products or increasing the petroleum levy threshold up to Rs. 100 per liter in the upcoming budget. The government is considering the move as IMF pushes for an integrated general sales tax (GST) to achieve the benefits of the value-added tax (VAT) for documentation and digitization.