In Islamabad, Prime Minister Shehbaz Sharif directed officials to raise the petroleum levy issue with the International Monetary Fund. The move aims to reduce the impact of rising global oil prices caused by the Iran conflict. It directly affects Pakistani consumers facing potential increases in fuel costs.
According to official sources, the prime minister instructed the Finance Division to review the current levy structure on petrol and diesel. He asked officials to engage with the IMF to explore possible adjustments. Currently, the government charges Rs100 per litre on petrol and Rs55 per litre on diesel.
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Moreover, these levies form part of Pakistan’s commitments under its IMF program. Therefore, any change requires consultation and approval from the lender. Officials said the government wants to balance revenue needs with public relief.
Meanwhile, the government has already spent Rs129 billion on subsidies to stabilize fuel prices. Authorities funded this relief through development budget cuts and internal savings. This step highlights efforts to protect citizens from global oil market volatility.
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Additionally, officials noted that the Iran conflict has pushed international oil prices higher. As a result, pressure on domestic fuel prices has increased significantly. The Finance Division will now prepare proposals to restructure the levy and minimize the burden on the public.