The Federal Government has decided to maintain current petroleum prices by increasing the petroleum levy on petrol and diesel, effectively forgoing price relief for consumers.
Petroleum Levy Increased by Rs. 10 Per Liter
According to sources from ProPakistani, the government has raised the petroleum levy on petrol and high-speed diesel (HSD) by Rs. 10 per liter. This increases the levy from Rs. 60 to Rs. 70 per liter and aligns with the International Monetary Fund (IMF) conditions set under its loan program.
Also Read: The Rise of Eco-Conscious Buyers: Why Green Properties Are the Future
IMF’s Role in the Levy Hike
Reports suggest that the IMF specifically required the Rs. 10 per liter hike in petroleum levy as part of the loan disbursement conditions. By complying with these requirements, the government aims to secure the next tranche of the IMF loan.
Economic Impact: Balancing Tax Revenue Shortfalls
Economic experts believe this move was necessary to address the tax revenue shortfalls. According to Muhammad Sohail, CEO of Topline Securities, the decision will help bridge fiscal gaps and ensure compliance with IMF’s financial stipulations.
However, this comes at the cost of missed opportunities for fuel price reductions, ultimately maintaining the financial burden on consumers.
Electricity Bill Relief Funded by Public Taxes
In addition to the levy hike, reports suggest that the government is planning to offer relief on electricity bills. However, this relief will be funded by tax collections from the public, raising concerns about the overall impact on household expenses.
Public Reaction and Future Outlook
With inflationary pressures already straining household budgets, the decision to keep fuel prices unchanged—despite global oil market trends—has sparked concerns among citizens and businesses. As Pakistan continues to navigate economic challenges and IMF obligations, the public awaits further updates on potential fuel price adjustments and taxation policies.
You May Also Like:
Fatima Fertilizer Teams Up with Atif Aslam for a Special Ramzan Song “Faslon Ko Takalluf”
