Days after oil price hike, Pakistan to increase petroleum levy — finance chief

Petrol station workers wearing facemasks wait for customers next to petrol pumps in Islamabad, Pakistan, on April 22, 2020. (AFP)

• Last week, the government jacked up petroleum prices by up to Rs8.14 per liter of high-speed diesel
• Shaukat Tarin says the planned increase in the petroleum development recommended by IMF

ISLAMABAD: Pakistan is going to increase the levy on petroleum products, the country’s finance chief told the local media on Saturday, days after the government jacked up oil prices to a record high.
The government on Thursday increased the price of petrol by Rs8.03 to Rs145.82, of high-speed diesel by Rs8.14 to Rs142.62 per liter, of kerosene oil by Rs6.27 to Rs116.53 and of light diesel oil by Rs5.72 to Rs114.07 per liter.
The planned increase in the petroleum development levy would come on the recommendation of the International Monetary Fund (IMF), the prime minister’s adviser on finance Shaukat Tarin told the local broadcaster Geo News.
“The International Monetary Fund has also asked to increase the petroleum development levy but it will depend on the global prices of petroleum products,” he said.
“We have to increase levy by some percentage ... when and how we will increase, it all depends on the oil prices. If there is dip in oil prices, it will be easier for us to increase levy.”
The planned increase is likely to result in further hikes of petroleum prices, for which Prime Minister Imran Khan is already facing criticism. 
On Friday, Khan defended his government’s decision to increase petroleum prices saying the rates in Pakistan were still the lowest in the oil importing world.
“India is selling one liter of petrol for Rs250 while Bangladesh is doing that for Rs200,” he said during a public rally in Attock. “Pakistan is selling it for Rs146. If we count out the oil producing nations, Pakistan is offering diesel and petrol at the cheapest rates in all the oil importing countries.”