ISLAMABAD (Kashmir English): As of July 1st, the federal government has increased the Climate Support Levy that’s levied on petrol and diesel, with the Petroleum Division issuing notifications about the revised rate.
However, they have also decreased their Petroleum Levy on these two types of fuel simultaneously.
According to this new notification, the government raised its Climate Support Levy on petrol and diesel by Rs. 2.50 per litre, increasing it from Rs. 2.50 to Rs. 5 per litre.
It’s important to note that while the government has reduced the petroleum levy on petrol and diesel by Rs. 2.50 per litre, at the same time, an increase was made in the climate support levy, which offsets the effects of such a move.
So, the net result is that there are no changes in the final prices of petrol and diesel, even though there have been some alterations to the levy structure.
This revised levy structure became applicable from July 1, as mentioned in the latest notification issued by the government. This change alters the makeup of various charges levied against fuels without raising their cost for consumers.
As a result, however, motorists will end up paying the same price for both petrol and diesel regardless of the changes made on these two levies.
To achieve this feat, the government has increased one levy but reduced the other by an equivalent sum.
Petrol Prices Likely to Drop
Global crude oil prices went down on Tuesday. This has raised hopes that petrol and diesel prices in Pakistan might go down when the government reviews fuel prices every two weeks.
In the market, Brent crude oil fell by 75 cents or 1.03% to $72.40 per barrel. At the time, US West Texas Intermediate crude oil dropped by 47 cents or 0.66% to $70.05 per barrel. UAE Murban crude oil stayed close to $67 per barrel.
Market experts think that the decline in oil prices is because people expect the United States and Iran to have talks in Doha, Qatar. When investors heard this, they felt better that there might be less tension in the region. This made them less worried about oil supplies being disrupted.
Global oil prices might go down more if things in the Middle East keep getting better and oil supplies stay steady. This is what Tim Waterer, Chief Market Analyst at KCM Trade, said.
If global crude oil prices stay where they are now or go down more, Pakistan might get some relief when the government reviews fuel prices. The government will make the final decision after looking at what the Oil and Gas Regulatory Authority recommends and considering other financial matters.
