Fuel rates skyrocket as Pakistan jacks up petroleum levy by Rs55 per litre
Business
Subsidies on petrol and diesel have been withdrawn under pressure from the IMF.
ISLAMABAD (Dunya News) - The government has significantly increased the petroleum levy, adding further financial burden on the public alongside a sharp rise in fuel prices.
According to reports, the levy on petrol has been increased by Rs55 per litre, pushing it to a record high of Rs160.61 per litre, compared to the previous Rs106 per litre. The move is expected to boost non-tax revenue, as the government has set a petroleum levy collection target of Rs1,468 billion for the current fiscal year.
In addition, subsidies on petrol and diesel have been withdrawn under pressure from the International Monetary Fund (IMF). Previously, subsidies of Rs95 per litre on petrol and Rs203 per litre on diesel were being provided, but these have now been completely removed, transferring the full burden to consumers.
A day earlier, the government had already raised fuel prices sharply, with petrol increasing by Rs137.23 per litre to Rs458.41, and high-speed diesel rising by Rs184.49 per litre to Rs520.35.
Meanwhile, jet fuel prices have also seen a steep surge, marking the sixth increase within a month. The latest hike of Rs40 per litre has taken the price to a record Rs517.17 per litre. Since March 1, jet fuel prices have increased by a total of Rs329.17 per litre, up from Rs188.
Experts warn that the continuous rise in jet fuel prices will significantly increase airline operational costs, likely leading to higher domestic and international airfares. Aviation sources caution that if the upward trend continues, passengers may face even more expensive air travel in the coming days.
