ISLAMABAD – Pakistani government is planning to jack up petrol prices once again by up to Rs10 per litre, by increasing petroleum levy, as authorities scramble to deal with a deepening financial crisis in the energy sector.
According to officials, the proposed increase is part of broader fiscal strategy to generate revenue and reduce Pakistan’s massive Rs. 2.8 trillion circular debt in the gas sector. The move is expected to directly impact fuel consumers across the country and could lead to a new surge in inflation.
The proposed hike is currently under review by the Ministry of Finance and the Ministry of Energy, with an official announcement expected soon. If approved, the revised levy could push petrol and diesel prices significantly higher in the coming days.
Officials estimate the measure could bring in Rs. 180 billion annually, which would help the government meet domestic debt obligations without relying solely on external support.
With inflation already burdening households, any further increase in fuel prices is likely to trigger public outcry. Economists warn that a petrol price hike will have a ripple effect on transportation, food prices, and utilities — worsening the cost of living for millions of Pakistanis.
The decision comes amid mounting pressure from the International Monetary Fund (IMF), which has demanded a clear plan to reduce energy-sector debt. Failure to comply could affect the release of the next loan tranche, crucial for stabilizing Pakistan’s economy.
The government is also in talks with banks to secure up to Rs2 trillion in loans, and is seeking relief on Rs. 800 billion in interest payments.
