The Pakistani government has raised the petroleum levy by Rs10 per liter, reaching a maximum of Rs70 per liter, while keeping fuel prices unchanged for the next two weeks.
This adjustment aligns with the coalition government’s commitment to the International Monetary Fund (IMF), which required an increase in the levy as a condition for continuing its loan program. The hike is expected to help offset tax revenue shortfalls and maintain fiscal discipline. According to Muhammad Sohail, CEO of Topline Securities, the move is necessary to meet the government’s financial obligations.
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Despite having the option to lower fuel prices, the government chose to maintain them, preventing any relief for consumers and keeping the financial burden on the public. However, authorities are working on providing some relief in electricity bills through tax adjustments, which will be funded by collecting additional taxes.
The petroleum levy increase is a crucial step in meeting IMF conditions, securing financial support for Pakistan while adding further strain on citizens already facing rising living costs. As per the revised rates, petrol remains priced at Rs255.63 per liter, and diesel at Rs258.64 per liter.
