The price of petrol may go up by Rs20 per litre after the government imposes a 10.5 percent sales tax on POL products.

According to the contents of the Letter of Intent signed with the IMF, tax exemption for the agriculture sector may also be lifted.

On Tuesday, the Senate Standing Committee on Petroleum took note of exorbitant petrol prices despite a reduction in prices in the global market.

The prices of petrol and light diesel oil were increased on August 15 by Rs6.72 and 43 paisa per litre, respectively.

“In the wake of fluctuations in petroleum prices in the international market and exchange rate variation, the government has decided to revise the existing prices of petroleum products to pass on the impact to consumers,” according to a statement of the ministry of finance issued at the time.

It was on July 14 that Prime Minister Shehbaz Sharif announced a reduction of Rs18.50 per litre in the price of petrol following a reduction in international prices.

It was the first time that the government reduced petroleum prices since coming to power in April.