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Influence of Taxes on Fuel Prices Being Observed

Islamabad: From April 1 through 15, the cost of gasoline and diesel will be lower. New prices for gasoline and diesel are Rs 110.35 and Rs 113.08, respectively, per litre, down from Rs 111.90 and Rs 116.08, respectively. The price of gasoline at the refinery, or “landed cost,” is Rs 72.28 per litre.

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According to the regulations, the petroleum development levy (PDL), which has been set at a low rate of Rs 11.23, may be imposed at a maximum rate of Rs 30 per litre.

The diesel price structure is comparable. Prices for kerosene and light diesel oil (LDO) have decreased by Rs 1.55 and Rs 1.56 per litre, respectively. To keep prices low, taxes are typically not applied to LDO and kerosene.

While diesel costs have fluctuated, Pakistan has always had the lowest prices for gasoline in the area. Pakistan is in the group with the lowest oil prices as of March 29, 2021, behind Sri Lanka only. Diesel costs $0.523 per litre in Sri Lanka while it costs $0.755 in Pakistan.

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Nonetheless, Pakistan has the lowest gasoline prices, at $0.728 per litre, compared to Sri Lanka ($0.809), Bangladesh ($1.05), India ($1.274), and even Bangladesh ($1.05).

In the US, the price of diesel is currently $0.818 and that of gasoline is $0.843. Prices in Pakistan were previously in category III but are currently at category II of cheap pricing.

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