Pakistan Raises Petroleum Levy, Consumers Denied Relief Despite Global Price Decline
Islamabad: The government of Prime Minister Shehbaz Sharif has increased the petroleum levy on petrol and high-speed diesel, depriving consumers of potential relief despite a decline in global oil prices.According to official documents, the petroleum levy on petrol has been raised by Rs4.65 per litre, increasing it from Rs79.62 to Rs84.27 per litre. Similarly, the…
Islamabad: The government of Prime Minister Shehbaz Sharif has increased the petroleum levy on petrol and high-speed diesel, depriving consumers of potential relief despite a decline in global oil prices.
According to official documents, the petroleum levy on petrol has been raised by Rs4.65 per litre, increasing it from Rs79.62 to Rs84.27 per litre. Similarly, the levy on high-speed diesel has been increased by 80 paisa per litre, taking it from Rs75.41 to Rs76.21 per litre.
Sources say that had the levy not been increased, petrol prices could have been reduced by approximately Rs4.5 per litre. However, the government chose to prioritise revenue generation, preventing the benefit of lower international prices from reaching consumers.
It may be recalled that the federal government has decided to keep petrol and diesel prices unchanged until January 31. According to a notification issued by the Ministry of Finance, the price of petrol remains at Rs253.17 per litre, while high-speed diesel continues to be sold at Rs257.08 per litre.
Analysts warn that the increase in the petroleum levy could further intensify inflationary pressures, with a likely ripple effect on transportation costs and the prices of essential goods.
