Pakistan increases petrol levy for electricity price relief

Prime Minister Shehbaz Sharif announced a Rs10 increase in the petroleum levy, raising it to Rs70 per litre. Petrol and diesel prices remain unchanged at Rs255.63 and Rs258.64 per litre, respectively. The additional levy will help reduce electricity prices by about Rs1.50 per unit. The government decided not to pass on recent global oil price reductions to consumers. Instead, the total electricity price reduction is expected to exceed Rs1.50 per unit, with an announcement scheduled for March 23. The government aims to generate Rs180 billion annually from the increased levy to support electricity price cuts. Despite the rise in the petroleum levy, petrol prices in Pakistan remain among the lowest in the region, while electricity costs are among the highest.