ISLAMABAD – Prime Minister Shehbaz Sharif directed the Finance Division to hold consultations with the International Monetary Fund on revising the petroleum levy structure in a bid to protect consumers from the impact of rising global oil prices triggered by the Iran conflict.
The official sources said that Prime Minister Shehbaz Sharif issued the instructions, asking the Ministry of Finance to formally take up the matter with the IMF so that any potential increase in fuel prices could be managed through adjustments in the existing levy framework.
At present, the government is charging a levy of Rs100 per litre on petrol and Rs55 per litre on diesel, in line with IMF programme requirements.
The development comes as the government has already spent Rs129 billion on subsidies to keep petroleum prices stable. Officials said the relief was arranged through cuts in the development budget and savings in other expenditures, underscoring the government’s efforts to shield the public from fluctuations in the international oil market.
A senior official, requesting anonymity, said the surge in global oil prices due to the Iran conflict has intensified pressure on domestic fuel rates. He added that the prime minister has clearly instructed authorities to take all possible steps to ensure that the burden is not passed on to consumers.
The Finance Division has been tasked with preparing a comprehensive proposal on possible restructuring of the levy for discussions with the IMF.
Sources said the government is examining various options to prevent the impact of rising global oil prices from being transferred to the public.
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