Government Increases Petroleum Levy, Keeping Fuel Prices Unchanged

The Federal Government has decided to keep petrol and diesel prices unchanged by increasing the petroleum levy instead of passing on potential savings to consumers.

According to sources, the government has raised the petroleum levy on petrol and high-speed diesel by Rs. 10 per litre, increasing it from Rs. 60 to Rs. 70 per litre. This decision was made to meet the conditions set by the International Monetary Fund (IMF) as part of its loan program. Reports indicate that the IMF specifically required this Rs. 10 per litre increase in order for Pakistan to secure the next loan installment.

The government’s move aims to bridge tax revenue shortfalls and generate additional funds. According to Muhammad Sohail, CEO of Topline Securities, this step will help authorities manage financial obligations, including potential relief in electricity bills through adjusted taxation.

If the levy had not been raised, fuel prices could have been reduced. However, with this increase, petrol and diesel prices remain the same, maintaining the financial strain on consumers. While the government insists this decision is necessary for economic stability, it means no immediate relief at the pump for the public.