Petrol rates likely to rise again as govt plans new levy

After several petrol price hikes in recent weeks, Pakistanis might face another increase at the pumps. The federal government is considering adding a petroleum levy of up to Rs10 per liter to tackle the growing financial crisis in the gas sector.

According to reports, the government is also planning to borrow Rs2 trillion from banks to manage the rising circular debt in the gas sector. A key meeting between the Ministry of Finance and Ministry of Energy is expected soon to finalize the plan.

IMF Pushes for Action

The International Monetary Fund (IMF) has asked Pakistan to present a clear plan to resolve the gas sector’s circular debt, which has reached a staggering Rs2.8 trillion. The IMF warned that without action, Pakistan may face delays in receiving the next loan installment.

What’s the Government Planning?

• Petroleum Levy: The government may impose a Rs3 to Rs10 per liter levy on petrol to raise funds.

• Gas Surcharge: Officials are also considering adding a surcharge to gas bills.

• Bank Loans: Plans are underway to borrow Rs2 trillion from banks on favorable terms.

• Debt Repayment Plan: The government plans to repay the borrowed money in phases over five years.

If these measures are approved, people could face higher prices for petrol and gas, adding to the current inflation.

The next round of IMF negotiations is expected later this week, where these plans will likely be discussed in detail.

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