The Pakistani government has raised the petroleum levy by Rs10 per liter, bringing it to a maximum of Rs70 per liter, while fuel prices remain unchanged for the next two weeks.
This adjustment affects both petrol and high-speed diesel, aligning with the coalition government’s commitment to meeting the International Monetary Fund (IMF) conditions.
The IMF required an increase in tax as part of its loan program, and this move is aimed at covering tax revenue shortfalls and ensuring fiscal discipline.
Muhammad Sohail, CEO of Topline Securities, highlighted that this step is necessary for the government to fulfill its financial responsibilities.
Despite having the option to lower fuel prices, the government chose not to, preventing any immediate relief for consumers and keeping the financial strain on the public.
However, there are plans to offer some relief on electricity bills through tax adjustments, which will be funded by collecting additional taxes from citizens.
While this increase in the petroleum levy is crucial for securing IMF support, it also burdens people already struggling with rising expenses.
With the revised levy, petrol remains priced at Rs255.63 per liter, and diesel continues to be sold at Rs258.64 per liter.