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Home | BOL News Pakistan | IMF Urges Increase In Petrol Price By PKR 53 Per Liter

BOL News Pakistan

IMF Urges Increase In Petrol Price By PKR 53 Per Liter

Sameera
Last updated: June 26, 2025 8:11 am
By Sameera
2 Min Read
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IMF Urges Increase In Petrol Price By PKR 53 Per Liter

Another piece of bad news is brewing for the people who are already facing inflation, which will lead to a sharp increase in inflation. According to media reports, the International Monetary Fund (IMF) has urged Pakistan to impose an 18% sales tax on petrol prices. If this happens, the prices of MS and HSD could be increased by PKR 47 per liter.

Apart from that, the IMF also suggested imposing a carbon levy of 5 rupees per liter, which will be the reason for the increase in petroleum prices. With these sales tax and carbon levy impositions, the petrol price in Pakistan will increase by PKR 53 per liter.

On the other hand, the Petroleum Division has recently expressed concerns about the purposes of increasing the petroleum levy by PKR 10. The increase in the levy was made to make electricity more affordable, but this decision is likely to reverse.

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But the sales tax rate on petrol prices is zero percent so far, and there is no sales tax being collected, but if so, then why are the petroleum prices high? While crude oil prices are descending in the international market. The petroleum levy is the only major tax, while customs duty is also imposed on petroleum products when they are imported into Pakistan.

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