Another fuel price hike likely as Pakistan set to raise petroleum levy on IMF demand

07:52 PM | 17 Aug, 2022
Another fuel price hike likely as Pakistan set to raise petroleum levy on IMF demand
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ISLAMABAD – The coalition government is likely to increase the prices of petrol and diesel at the start of the month of September.

Another hike is expected as cash-strapped country agreed condition of an increase in the levy on all petroleum products that the global lender demanded to revive the much-needed programme.

As per the letter of intent sent by the South Asian country to the International Monetary Fund, there will be a gradual increase in the Petroleum development levy (PDL) which will be raised by Rs50 till January 2023.

Reports suggest that a levy of Rs10 on petrol and Rs5 on diesel would be increased by the start of next month, and it will be further increased by another Rs5.5 per liter in the coming months.

The development comes days after the incumbent government jacked up the price of petrol by Rs6.72 per liter and the price reached Rs233.91 per liter.

Earlier this week, Finance Minister Miftah Ismail defended the hike in petrol prices, saying the government has not imposed furher tax on petroleum products.

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Pakistan’s new finance chief, who even faced criticism from within his party, defended the decision stating that the price increase will not affect the supply and demand cycle.