Pakistan, May 24 -- Pakistan's inflation-hit consumers faced another financial setback after the government increased the petroleum levy on diesel instead of passing on the expected relief from lower international fuel pricing trends. Officials revised the diesel levy upward despite calculations showing room for a significant reduction in retail fuel prices for consumers and transporters across the country.

According to official documents, authorities had worked out a possible decrease of Rs12.80 per litre in diesel prices based on prevailing market conditions and pricing adjustments. However, instead of offering relief, the government increased the petroleum levy on diesel from Rs52 per litre to Rs58 per litre, further raising concerns ...