In a National Assembly’s session held today (Wednesday, 29th June, 2022) in Islamabad, the government has approved an increase in the petroleum levy by up to 50 PKR. During the session, Finance Minister Miftah Ismail mentioned that this amendment gives the government authority to raise the prices of fuel with respect to levy whenever they want.
The minister further said,
“… I do not see a scenario in which the levy will go up to Rs50 anytime soon.”
And with this news, immediate turmoil has been noticed in the market which is already pretty unstable. There are rumours that the government will be increasing the price of petrol by Rs30 to Rs40 per litre from next month. If rumours turn out to be true, the per litre price of petrol will reach almost 270-280 rupees from 1st July, 2022 which was always the goal of the current government from the start.
International Monetary Fund (IMF) has been pestering the government to remove all subsidies on petroleum products and increase prices and tax instead. According to the Finance Minister, the government is not taking any levy on petrol right now. But on the other hand, the government has stressed multiple times that tough times are ahead. Considering all the variables, the increase in petrol prices is inevitable.
The session has also given the approval for the implementation of the 10% super tax that the Prime Minister announced a week ago. The new tax will be applicable on all large industries, including the auto industry.