Despite a notable decline in global crude oil prices, the Pakistani government has not passed the savings on to consumers. Instead, it has increased the petroleum development levy, effectively imposing what has been described as a “fuel bomb” on the public.
According to sources, the government has raised the levy by an additional 10 rupees, setting it at 70 per litre. This move is part of an effort to achieve the fiscal year’s revenue target of 1,028 billion rupees from the petroleum development levy.
Read: Petrol and Diesel Prices to Drop Again This September
Recent reports have detailed that over the past 15 days, international petrol and high-speed diesel prices have decreased by approximately 5 dollars per barrel. Specifically, the average price of petrol has dropped from 81 dollars per barrel to below 76 dollars, and high-speed diesel from 88.5 dollars per barrel to about 83 dollars per barrel. Despite these reductions, the import premiums for these fuels have remained stable at around 8.5 and 5 dollars per barrel, respectively.
With petrol currently priced at 259.91 rupees per litre and high-speed diesel at 262.75 rupees per litre, further increases in the petroleum development levy are anticipated. Media sources indicate that significant relief in consumer petroleum product prices remains unlikely due to the government’s shortfall in meeting tax revenue targets.
