The federal government increased petroleum taxes through a presidential ordinance at a notable level. They chose to absorb the benefits of the declining global oil prices rather than passing them on to the consumers.
The new project raised the tax on petrol by Rs. 8.02 per liter and diesel by Rs. 7.01 per liter, pushing the total petroleum taxes to Rs. 78.02 for petrol and Rs. 77.01 for diesel per liter.
This decision came in addition to the government’s announcement to maintain fuel prices for the next fortnight, keeping petrol at Rs. 254.63 and diesel at Rs. 258.64 per liter despite favorable international market trends.
Prime Minister Shehbaz Sharif previously indicated this approach, explaining that the revenue generated from these taxes will be used for development projects in Balochistan rather than consumer price reductions.
The move aims to effectively balance the potential price relief from falling global oil prices, continuing the government’s strategy to uphold revenue through petroleum taxation while maintaining stable pump prices for consumers.
This development represents a significant fiscal adjustment prioritizing government revenue generation and regional development over immediate consumer relief at fuel stations nationwide.