The government has increased the price of petrol by Rs7.45 and that of high speed diesel by Rs9.56 per litre, sources said.

After approval of the finance bill 2024-2025, the prices of petroleum products have been increased.

Earlier, President Asif Ali Zardari gave assent to tax-laden Finance Bill 2024 for the new fiscal year, effective from July 1.

It was expected that the price of petrol will be increased by Rs7 per litre and diesel will become expensive by Rs10 per litre.

The increase in petroleum levy in the budget is believed to be the reason behind the expected rise in the prices of petroleum products.

On June 12, the government presented the budget for the financial year 2024-25 in which it was set to revise the prices of petroleum products for the first time on June 31.

The Finance Bill proposed to increase the petroleum levy from Rs20 to Rs80, which is a major source of revenue for the government. The aim is to get a further bailout package from the International Monetary Fund (IMF).

As per the proposed Finance Bill 2024, the maximum rate of petroleum levy on both petrol and high-speed diesel (HSD) has been fixed at Rs80 per litre. The purpose of this increase is to increase the revenue of the government and ensure fiscal stability.

The government has set a revenue target of Rs12.97 trillion for the Federal Board of Revenue (FBR) for the upcoming financial year 2024-25. Various measures are being taken to meet this target, including the increase in petroleum levy.