ISLAMABAD: Prime Minister Shehbaz Sharif has instructed the Finance Division to engage with the International Monetary Fund (IMF) regarding the current levy structure on petrol and diesel, in a bid to shield the public from rising fuel costs triggered by the ongoing conflict in Iran.
Currently, the government imposes a levy of “Rs100 per litre on petrol” and “Rs55 per litre on diesel”, which form part of the IMF’s conditional requirements. Sources said the prime minister wants any necessary adjustments in petroleum prices to be offset by existing levies, ensuring minimal impact on consumers.
The government has already spent Rs129 billion in fuel subsidies to stabilize domestic prices. These expenditures have been managed by reducing the development budget and reallocating savings from other sectors, officials added.
A senior official, speaking on condition of anonymity, noted, “Global oil prices have surged due to the Iran conflict, putting pressure on domestic petroleum rates. The prime minister’s directive is clear: every step must be taken to ensure that this external shock does not translate into higher fuel prices for the people.”
The Finance Division will now prepare a detailed proposal for the IMF to rationalize fuel levies, with the aim of avoiding passing international oil price hikes onto Pakistani consumers.
