The Federal Government has decided to maintain current petroleum prices by increasing the petroleum levy on petrol and diesel, foregoing potential price relief for consumers.
According to sources, the government has raised the petroleum levy by Rs. 10 per liter, increasing it from Rs. 60 to Rs. 70 per liter to meet the conditions set by the International Monetary Fund (IMF).
Read More: Pakistan Raises Petroleum Levy to Rs70 per Liter
The IMF specifically requested this hike as part of its loan program requirements. The move is aimed at securing the next tranche of the IMF loan and addressing tax revenue shortfalls, according to Muhammad Sohail, CEO of Topline Securities.
While the government plans to provide relief on electricity bills, it will compensate by collecting additional taxes from the public. By increasing the petroleum levy, authorities have prevented a possible reduction in fuel prices, keeping the financial burden on consumers intact.
