Prime Minister Shehbaz Sharif has directed the Ministry of Finance to engage with the IMF regarding the structure of the petroleum levy on petrol and diesel to prevent the burden of rising global oil prices from being passed on to the public.
According to official sources, the Prime Minister instructed the Finance Division on Tuesday to raise the issue with the IMF and propose measures to balance any potential changes in petroleum prices through the existing levy. Currently, the government is imposing a levy of Rs100 per liter on petrol and Rs55 per liter on diesel, which is part of IMF conditions.
This development comes at a time when the government has already provided a subsidy of Rs129 billion to keep fuel prices stable, achieved through cuts in the development budget and savings in other expenditures.
Officials said that global oil prices have surged due to the Iran conflict, increasing pressure on domestic fuel prices. However, the Prime Minister has clearly directed that all possible measures be taken to prevent the impact from reaching the public.
Sources added that the Finance Division has been instructed to prepare a comprehensive proposal on restructuring the petroleum levy in consultation with the IMF, while the government is exploring various options to minimize the burden of rising global oil prices on citizens.
