Prices breach the barrier
ISLAMABAD: The caretaker government has raised the petroleum development levy (PDL) on petrol to the maximum limit of Rs60 per litre to meet the IMF requirement.
On Thursday, the Finance Division increased the petrol prices by Rs14.91 per litre and high-speed diesel (HSD) prices by Rs18.44 per litre.
Petrol prices breach the barrier of Rs 300/litre for the first time.
This increase brings the price of petrol to Rs305.36 per litre and HSD to Rs311.84 per litre. It is the highest price level in the country’s history.
Pakistan, in June, approved an increment of the PDL to Rs60 on both petrol and diesel through the Finance Bill 2023. The National Assembly gave its approval for this change.
A levy of Rs50 per litre is imposed on diesel, while on petrol, there was a recent increase of Rs5 in the POL prices.
Under the IMF deal, the government is permitted to apply a maximum PDL of Rs 60 on petroleum products. Any further increase in the PDL requires approval from the parliament.
The finance ministry has linked fuel prices raise with the “rising trend of petroleum prices in the international market and fluctuations in exchange rates.”
Domestic petroleum prices increased further
Meanwhile, on Thursday midnight, the interim government raised the price of petrol by Rs14.91 per litre. The price of petrol has surged to Rs305.36 per litre. Moreover, the cost of high-speed diesel has been pushed up by Rs18.44 per litre, resulting in a new price of Rs311.84.
On August 16, there was a Rs17.50 per litre hike in petrol prices, bringing it to Rs290.45. Similarly, high-speed diesel reached Rs293.40.
Before this, on August 1, the then federal government had raised the petrol price by Rs19.95 per litre.
Notably, Finance Minister has dismissed the possibility of additional subsidies within the framework of the IMF agreements.
She emphasized that the caretaker government had “inherited” the IMF program, making it a “non-negotiable” aspect.
She clarified that the existing agreements don’t allow for supplementary subsidies.
Dr. Shamshad Akhtar pointed out that the current administration aims to formulate a comprehensive strategy to strengthen the nation’s economic well-being.
