IMF Deal – Government Doubles Petrol Levy
As all of you know, the government announced revised prices of petroleum goods yesterday. In a somewhat surprising move, the authorities reduced the petrol price by Rs. 3; however, the diesel rate was hiked by Rs. 8.95. Along with that, the Petrol Levy (PL) has also been increased.
As per a notification, the new PL is Rs. 20 from the previous Rs. 10. It is pertinent to mention that the government has promised to take PL to Rs. 50 under the agreement with International Monetary Fund (IMF).
Furthermore, the Sales Tax will also be taken to 17% under the same deal. Currently, there is a 0% Sales Tax on petrol price. These two points were among the most critical conditions for releasing the IMF loan for Pakistan. It means we will see an increase in petrol prices in the coming days. However, if the prices in the international market go down, we may not face much impact from these taxes.
Current Petrol Prices
After the latest reduction in petrol prices, petrol now costs Rs. 227.19 compared to the old price of Rs. 230.24.
Meanwhile, the new Diesel rate is Rs. 244.95 instead of Rs. 236.
And the new rate of Kerosene Oil is Rs. 230.26 against Rs. 211.43.
Light Diesel Oil now costs Rs. 201.07 compared to the previous rate of Rs. 196.45.
The petroleum prices have proved to be a huge issue for the current government as it has increased prices up to Rs. 30 thrice since April 2022. And these jumps in prices have directly affected the masses as everyday commodities are directly linked with petrol prices in Pakistan. As petrol prices rise, everything becomes expensive, increasing the burden on the common people.
Hopefully, the global prices will remain stable because it is extremely essential for Pakistan and its economy.
What do you think about this latest petrol levy? Do you think it is justified? Please share your thoughts in the comments section.