IMF program 'hinders' petroleum prices relief in Pakistan

ISLAMABAD: The government’s inability to reduce the petroleum levy has resulted in a significant increase in petroleum prices, with prices rising by Rs 12.14 per liter over the past month and a half, ARY News reported citing sources.

According to sources, the price of high-speed diesel has increased by Rs 12.14 per liter since October 16, while the price of petrol has risen by Rs 5.07 per liter during the same period.

The government has increased the price of high-speed diesel three times and petrol twice over the past month and a half. According to sources, the government could have reduced the levy to prevent the price hike, but the IMF program restrictions prevented it, sources revealed.

Currently, a levy of Rs 60 per liter is being charged on petrol, while the same levy is also applicable to high-speed diesel.

The petroleum levy collection has witnessed a significant increase, with Rs 261.69 billion collected from July to September 2024. This shows an increase of Rs 39.62 billion compared to the same period last year.

The government has set a target of collecting Rs 1,281 billion in petroleum levy during the current fiscal year, sources said.

Also read: Govt hikes petrol prices

Yesterday, the government increased the prices of petrol and diesel, further burdening the public amid rising inflation.

The price of petrol increased by Rs. 3.72 per liter, with the new price now set at Rs. 252.10 per liter, as per the issued notification.

Similarly, the price of High-Speed Diesel has increased by Rs. 3.29 per liter, bringing the new price to Rs. 258.43 per liter.

It’s worth mentioning that on September 27, Pakistan received the first tranche of the International Monetary Fund’s (IMF) following the approval of the IMF Executive Board of a 37-month Extended Fund Facility amounting to US$7 billion.

State Bank of Pakistan (SBP) received SDR 760 million –equivalent to USD 1026.9 million– as the first tranche from the IMF on Friday, according to SBP.