The government is mulling over increasing the General Sales Tax (GST) on petroleum products, including petrol, to meet the demands of the International Monetary Fund (IMF). Currently, there’s a proposal to raise the levy on petrol from Rs60 to Rs100 per liter in the upcoming budget.
The IMF has urged the government to restore the GST on petrol to 18%, which has been at zero since March 2022. This move could generate substantial revenue, with the current levy already bringing in around Rs 950 billion annually.
In recent developments, the government has decided to keep the price of petrol steady but has reduced the price of high-speed diesel by Rs 1.77 per liter. This decision aims to stabilize domestic fuel rates amid fluctuations in global oil prices.
Additionally, there have been reductions in the prices of light diesel oil and kerosene as well, although not explicitly stated in the official notification.