Budget 2024-25: Expected petrol prices in Pakistan from June 16 after petroleum levy increased

ISLAMABAD: As the federal government presented an ambitious Budget 2024-25 with total outlay of Rs18.9 trillion, the target has been set to collect Rs1.28 trillion through the petroleum levy in the upcoming fiscal year.

The revenue collection target of the outgoing fiscal year through petroleum levy was Rs869 billion, which saw an increase of 47.4pc from the outgoing year. The government recommended an increase in the levy from Rs60 to Rs80 per litre.

The government collected Rs960 billion from the PL, surpassing the original target. Considering that, the budget for the upcoming FY targets an additional collection of Rs321bn.

If the proposal is approved, the petroleum prices are expected to move up from July 2024.

Likewise, Rs28bn is expected to be collected from the levy on crude oil. The newly introduced levy on gas is projected to generate Rs400 million. The proposal also seeks a 50 percent surge in the levy on high-octane, light diesel, and ethanol.

Although the government has proposed to increase levies on petroleum products, citizens can still expect relief in the upcoming fortnight revision of petrol prices from June 16.

Petrol and diesel prices in Pakistan are likely to go down after international oil rates saw a downtrend amid the crisis in the Middle East.

Expected petrol prices from June 16 in Pakistan

Pakistan Muslim League-Nawaz (PML-N) led government has reduced petrol prices by Rs24 per litre and diesel by Rs20 per litre since April 16.

The new revision which will be announced on June 15 can see a reduction in petrol price by Rs12 to Rs256.36 per litre, starting from June 16 in Pakistan.

Current Petrol Prices in Pakistan

The federal government decreased petrol prices by Rs 4.74 and diesel prices by RS 3.68 for June 1 till June 15.  Currently, the petrol price stands at Rs268.36 per litre while the diesel price is at Rs273.10 till June 15.