In a significant move, Pakistan signals the likelihood of a petrol price hike as the government commits to intensifying the collection of petroleum levy. The Ministry of Finance, in recent discussions with the International Monetary Fund (IMF), has pledged to raise the annual target by an additional Rs. 50 billion, reaching up to Rs. 920 billion for the ongoing fiscal year.
Presently, the government imposes a Rs. 60 per liter tax on both petrol and diesel. The initial budget of Rs. 869 billion for petroleum levy collection is now being adjusted to Rs. 920 billion, marking a potential shift in petrol prices.
During the first quarter, the government has already surpassed expectations by accumulating Rs. 222 billion in petroleum levy, indicating a substantial 367 percent increase compared to the same period last year.
Despite global reports indicating a decline in crude oil prices, consumers in Pakistan might not experience relief in petrol prices due to the proposed surge in the petroleum levy. This petrol price hike move aligns with the government’s commitment to meeting fiscal targets outlined in negotiations with the IMF, sparking concerns about the potential impact on everyday consumers in Pakistan. Stay tuned for updates as discussions progress.
, has pledged to raise the annual target by an additional Rs. 50 billion, reaching up to Rs. 920 billion for the ongoing fiscal year.){kind=link}