Despite a global decrease in petroleum product prices, Pakistanis should not expect any relief.

For the federal budget of 2024-25, government is considering an increase in levy sales tax on petroleum products and the petroleum levy in the upcoming financial year. Media reports suggest the possibility of increasing the petroleum levy by up to 20 rupees per litre to boost federal income.

Additionally, it has been proposed that sales tax be imposed on petroleum products in the next financial year.

Reportedly, the levy could be raised from Rs. 60 to Rs. 80 per litre.

Currently, the government is already receiving a petroleum levy of Rs. 60 per litre on both petrol and diesel, in line with commitments made to the International Monetary Fund (IMF) on petroleum products during the current financial year. A target of collecting 869 billion rupees has been set.