- Govt has spent Rs129bn on fuel subsidy.
- Fuel levy imposed as part of IMF conditions.
- Source says PM wants less burden on people.
ISLAMABAD: Prime Minister Shehbaz Sharif has instructed the Finance Division to talk to the International Monetary Fund (IMF) over the levy structure on petrol and diesel, aiming to prevent any additional burden on the public amid surging global petroleum prices triggered by the ongoing Iran war.
According to sources, the prime minister on Tuesday asked the finance ministry to take up the matter with the IMF so that any required adjustment in petroleum prices could be offset against the existing levies.
At present, the government imposes a levy of Rs100 per litre on petrol and Rs55 per litre on diesel. These levies on petroleum products are part of IMF conditionalities.
The move comes as the government has already spent a massive subsidy of Rs129 billion to keep the fuel prices stable for consumers.
This relief has been financed by slashing the development budget and generating savings from other heads, officials said, underscoring the government’s commitment to protecting the common man from the full impact of international oil market volatility.
“Global oil prices have witnessed a sharp increase due to the Iran war, putting pressure on domestic petroleum rates,” a senior government official said on condition of anonymity.
“The prime minister’s directive is clear: every possible step must be taken to ensure that this external shock does not translate into higher fuel prices for the people.”
The Finance Division has been tasked to discuss with IMF a detailed proposal on possible levy rationalisation. It is believed that the government is exploring options to avoid passing the burden of the international oil price hike on the people of Pakistan.
Originally published in The News
