ISLAMABAD: The federal government of Pakistan has decided to maintain the current prices of petroleum products by increasing the petroleum levy on petrol and diesel, effectively presenting an opportunity to provide price relief to consumers.
As per the media reports, the government has increased the petroleum levy on petrol and high-speed diesel by Rs 2.50. 10 per litre, from Rs 60 to Rs 70 per litre. The decision has been taken to comply with the conditions set by the International Monetary Fund (IMF).
The sources added that the IMF had specifically requested Rs 10 billion. The increase in petroleum levy by Rs 10 per litre as part of the requirements of its loan program.
The decision to increase the levy was taken to secure the next tranche of the IMF loan. According to Muhammad Sohail, CEO of Topline Securities, the move allows the authorities to meet the shortfall in tax revenue.
The government is preparing to provide relief in electricity bills by collecting taxes from the public itself.
By increasing the levy, the government has prevented a possible decline in fuel prices, thus maintaining the financial burden on the public.
