The federal government may impose a fuel levy of between Rs50 and Rs55 per litre on petrol or diesel by next Friday, Petroleum Minister Ali Pervez Malik confirmed.
The minister made the announcement during a private television interview, just hours after the government increased prices of petrol and diesel.
Ali Pervez Malik stated that if the IMF grants Pakistan a waiver during ongoing negotiations, the government will not need to raise the fuel levy at all.
IMF talks ongoing
Ali Pervez Malik said Pakistan is in continuous contact with the International Monetary Fund and discussions on securing a levy waiver are currently active.
He warned that Pakistan is bound by its existing IMF agreement and must honour its commitments, as the cost of non-compliance would be severe.
The minister said support from IMF remains essential for the economy of Pakistan to move forward and that the programme cannot be abandoned at this stage.
Diesel levy currently zero
The minister confirmed that the levy on diesel currently stands at zero and has been transferred entirely onto petrol to ease the burden elsewhere.
He stated that petrol prices had already been reduced by Rs80, adding that the government and provinces jointly spent Rs100 billion to provide public relief.
Ali Pervez Malik said Pakistan currently offers some of the lowest diesel prices in the world, despite ongoing fiscal pressures and IMF programme conditions.
Hikes Petrol Levy
Earlier in a day, the federal government raised the Petroleum Development Levy on petrol by Rs26.77, setting the new rate at Rs107.38 per litre effective immediately.
The previous petroleum levy on petrol stood at Rs80.61 per litre before the government announced this latest significant revision to the existing rate.
The Petroleum Division issued an official notification confirming the revised petrol price is now fixed at Rs393.35 per litre across the country.
According to the notification issued yesterday, diesel prices have also increased by Rs26.77 per litre, with the new official price now set at Rs380.19 per litre.
However, the government made no changes to the Petroleum Development Levy applied specifically on diesel, leaving that rate entirely unchanged from before.
