ISLAMABAD:

The government is planning to increase petroleum levy to Rs85 per litre to raise an additional Rs540 billion, use dividends of the state-owned companies (SOEs) and savings from diversion of imported cargos to settle Rs1.7 trillion worth of gas sector circular debt.

The plan, which has been discussed in depth at the level of the Minister for Finance Muhammad Aurangzeb this week, involves imposing an additional Rs5 per litre petroleum levy on petrol and high-speed diesel to raise money through 2031 to retire the debt, according to government sources.

The plan would partly transfer the cost of past wrong decisions to every household that will now be paying Rs5 extra on every litre of petrol and diesel, subject to cabinet approval.

Government sources said that the Petroleum Divi

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