Petrol prices in Pakistan are currently more than 1.5 times higher than they were at this time last year. Even though the cost of purchasing petrol has decreased in the international market, the government of Pakistan is able to maintain its revenue from the petroleum levy because it can reduce the price of petrol without changing the levy. As a result, the government is able to afford this change. Do not forget it is the same government that plans to distribute 100,000 laptops unable to pay for a consignment of lentils at the port.
It is not the government that buys and sells petroleum, but rather various companies. If the government does not reduce the price, it will benefit the petroleum companies. The government only adds a petroleum levy as part of its commitment to the International Monetary Fund (IMF).
