budget 2024-25 the government suggests Rs. 80 per liter levy on petrol and diesel

Budget 2024-25 the government suggests Rs. 80 per liter levy on petrol and diesel

For those expecting a drop in petrol prices soon, brace yourselves for a potential crude shock. In the proposed fiscal budget for 2024-25, Finance Minister Muhammad Aurangzeb suggests a significant increase in the levy on petrol and diesel by Rs. 20, elevating it from the previous Rs. 60 to Rs. 80.

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This decision stems from pressure to comply with IMF recommendations to secure an upcoming loan program, burdening the salaried and middle class. It’s worth noting that the previous Rs. 60 per liter levy was also imposed under IMF pressure, indicating a stretched threshold in revenue generation strategies.

Additionally, there were discussions about imposing an 18% GST on petroleum products, which currently stand at 0%. Both scenarios paint a grim picture for Pakistan’s inflation-stricken commoners, exacerbating their struggle with rising living costs.

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Consumers are likely to experience the repercussions of consecutive declines in petrol prices in recent revisions. This situation holds significant implications for Pakistan, heavily reliant on oil imports (around 85%), amidst an economy grappling with inflation exceeding 28.3% in January.

While the IMF deal aims to stabilize the economy, it comes with higher taxes and energy costs, posing a significant challenge for Pakistanis. The potential impact extends beyond the pump, affecting transportation costs for essential goods and services and increasing operational expenses for businesses reliant on fuel.

In a previous revision, the federal government reduced petrol prices by Rs. 4.74 per liter, leading to new prices of Rs. 268/liter and Rs. 270.22/liter, respectively. What are your thoughts on the government’s new move? Do you believe it’s justified? Share your opinions in the comments section below.