PAK-IMF agreement: Govt expected to raise petroleum levy

The government of Pakistan is likely to impose additional burden on citizens by raising petroleum levy to fulfill International Monetary Fund (IMF) terms, ARY News reported on Friday, Citing sources.

According to the sources, the federal government is expected to increase the petroleum levy after which the initial electricity tariff will likely to raise Rs 3 to Rs 5 per unit, adding that the gas will also become more expensive for the citizens of Pakistan.

The government sources maintained that the federal cabinet will take the decision regarding the increase in electricity tariff. Simultaneously, government sources have also hinted at an anticipated decision to further increase gas prices in the near future.

READ: IMF, Pakistan reach $3bn staff-level agreement

Furthermore, the sources said that the Oil and Gas Regulatory Authority (OGRA) already sent a proposal to the government to raise gas tariff up to 50 per cent.

The confidential sources have stated that the government possesses the capacity to levy an additional Rs 10 per liter on both petrol and diesel prices. At present, petrol and diesel prices stand at Rs 50 per liter, and if approved, the government could exercise its authority to escalate them to Rs 60 per liter, further impacting the transportation and fuel expenses of the populace.

It is pertinent to mention here, under the coalition government, electricity and gas consumers had already been grappling with a cumulative burden exceeding Rs 1.3 trillion.

Moreover, the electricity consumers, in particular, have been subject to an additional burden exceeding Rs. 1 trillion. Similarly, the gas consumers have been saddled with an extra cost of Rs 310 billion.

Under the present government, electricity prices have risen to an alarming Rs 11.30 per unit. The initial tariff for electricity has also witnessed an increase, reaching Rs 7.91 per unit.

In addition to these escalations, an extra surcharge of Rs 3.39 per unit has been imposed on electricity consumers.

The coalition government has hiked gas prices by 112 percent since taking charge. Such steep increases have raised concerns among consumers and industry stakeholders, who fear the adverse consequences on businesses and the overall cost of living.

from Latest Pakistan News and Breaking News from All over Pakistan https://ift.tt/4rjdQG3