Govt Increases Petroleum Levy by Rs. 10 Per Liter to Meet IMF Conditions

The Federal Government has decided to maintain the current prices of petroleum products by increasing the petroleum levy on petrol and diesel, effectively foregoing the opportunity to provide price relief to consumers. Sources told ProPakistani the government has raised the petroleum levy on petrol and high-speed diesel by Rs. 10 per liter, increasing it from Rs. 60 to Rs. 70 per liter. This decision was made to comply with the conditions set by the International Monetary Fund (IMF). Sources added that the IMF had specifically requested a Rs. 10 per liter increase in the petroleum levy as part of its loan program requirements. The decision to increase the levy was made to secure the next tranche of the IMF loan. This move allows authorities to bridge the tax revenue shortfalls, according to Muhammad Sohail, CEO of Topline Securities. The government is preparing to provide relief in electricity bills by collecting taxes from the public itself. By raising the levy, the government has prevented a potential reduction in fuel prices, thereby maintaining the financial burden on the public.