Govt likely to increase petrol prices by Rs20 from Sept 1, source

Government is likely to increase petrol prices by Rs20 from Sept 1, the source claim.

In order to fulfill the pre-requisites of the IMF, the federal government is likely to abolish the sales tax exemptions on petroleum products for the agricultural sector from September 1, the sources said.

As per the news source, the coalition government is likely to jack up the prices of petroleum products by a massive Rs20 per liter from September 1, in an attempt to revive the stalled $6 billion IMF bailout package.

The source revealed that according to the letter of intent (LoI) the government sent to the IMF, it had written that a sales tax has been imposed on petroleum products.

Keeping the above in view, the sources said that the rate of sales tax is likely to be hiked from next month.

The authorities are considering introducing a 10.5% sales tax on petroleum products from October under the conditions set by the International Monetary Fund (IMF).

It is pertinent to mention a wave of inflation was triggered after that the government removed subsidies from petroleum products in line with an IMF agreement.