Prime Minister Shehbaz Sharif has directed the Finance Division to engage with the International Monetary Fund (IMF) over the structure of petroleum levy imposed on petrol and diesel, aiming to shield the public from rising global oil prices.
Read More: Govt plans Rs 5 fuel levy hike ahead of IMF deal
According to official sources, the prime minister issued the directive during a meeting on Tuesday, instructing officials to formally raise the matter with the IMF. The move comes amid increasing pressure on fuel prices due to global market fluctuations, partly driven by regional geopolitical tensions.
Currently, the government is charging a petroleum levy of Rs100 per litre on petrol and Rs55 per litre on diesel. These levies are part of the commitments agreed upon with the IMF under Pakistan’s ongoing economic program.
The government is exploring ways to adjust the levy structure so that any increase in international oil prices can be managed without directly passing the burden onto consumers. Officials say the aim is to maintain price stability in the domestic market despite volatility in global energy prices.
This development follows the government’s recent efforts to stabilize fuel prices through significant financial support. Authorities have already spent around Rs129 billion in subsidies to prevent a sharp rise in petroleum prices. These subsidies were financed through cuts in development spending and savings from other budgetary heads.
وزیراعظم محمد شہباز شریف کی زیرِ صدارت خطے کی صورتحال کے پیشِ نظر پیٹرولیم مصنوعات کی سپلائی چین، بچت اور کفایت شعاری کے لیے جاری اقدامات کے نفاذ کے حوالے سے اجلاس
اجلاس میں کم آمدنی والے طبقات کو موجودہ صورتحال کے تناظر میں ریلیف پہنچانے کے حوالے سے اقدامات کا جائزہ لیا گیا۔… pic.twitter.com/3zmhK9pTeb
— PMLN (@pmln_org) April 1, 2026
A senior government official, speaking on condition of anonymity, said that the recent surge in global oil prices—linked to tensions involving Iran—has intensified pressure on Pakistan’s fuel pricing mechanism. The prime minister has made it clear that all possible measures should be taken to minimize the impact on the public.
Read More: IMF urges Pakistan to revise oil prices amid Middle East crisis
The Finance Division has now been tasked with preparing a comprehensive proposal for discussions with the IMF regarding possible restructuring of the petroleum levy framework.