In the recently proposed Finance Bill 2024, the government has introduced a notable increase in the maximum petroleum levy, raising it by Rs20 to Rs80 per litre. This adjustment is expected to have a significant impact on petrol and high-speed diesel (HSD) prices nationwide.
Currently, petrol is priced at Rs258.16 per litre, while HSD stands at Rs267.89 per litre. Earlier this month, prices were reduced by Rs10.20 and Rs2.33, respectively. However, with the new levy, these prices are anticipated to rise sharply.
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The petroleum levy has been identified as a crucial revenue stream for the government, which is seeking to bolster its finances and secure another bailout package from the International Monetary Fund (IMF). This move aims to enhance the government’s revenue, targeting Rs12.97 trillion for the Federal Board of Revenue (FBR) in the upcoming fiscal year.
Market analysts predict that the increase in the petroleum levy will directly translate to higher fuel costs for consumers. The precise extent of the price rise will be confirmed on June 31, when the government finalizes the revision.
The expected surge in fuel prices comes at a time when the public is already grappling with inflationary pressures. This development is likely to exacerbate the economic burden on households and businesses alike, adding to the challenges faced by the populace amidst rising costs of living and operational expenses.
