Government Increases Development Levy on Petrol to Rs. 55 Per Liter

The federal government of Pakistan has recently implemented measures in accordance with an agreement reached with the International Monetary Fund (IMF), as part of a bailout package. These measures aim to strengthen the country’s economic stability and generate additional revenue.

As a result of these measures, the government has decided to raise the levy on petrol by Rs 5 per liter. This increase in the development levy has elevated the petrol levy from Rs 50 to Rs 55 per liter.

It is important to note that this revised petroleum levy rate will be applicable throughout the country. However, the development levy on high-speed diesel will remain unchanged at Rs 50 per liter.

In accordance with the new IMF program, both petrol and high-speed diesel levies will undergo gradual increments. Eventually, both fuels will be subject to a levy of Rs 60 per liter.

The government expects to collect a substantial amount of revenue through the petroleum levy during the fiscal year FY 2023-24. It is estimated that the public will contribute approximately Rs 859 billion through this levy. These funds play a vital role in financing various development projects and public services.

Recently, Finance Minister Ishaq Dar announced the new petrol prices that will be effective until July 15. Petrol prices will remain unchanged at Rs. 262 per liter, ensuring stability for consumers. However, diesel prices have been increased by Rs. 7.50, with the new per liter price set at Rs. 261 for the next fortnight.

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These adjustments in the development levy and fuel prices reflect the government’s commitment to implementing necessary economic reforms and fulfilling its obligations under the IMF agreement. By taking these measures, the government aims to enhance revenue generation, address fiscal challenges, and promote sustainable economic growth in Pakistan.