Diesel Price To Increase By Rs. 10/Liter
The federal government has decided to raise the petroleum development levy (PDL), also known as the petrol levy, on diesel in the upcoming two months to make up for a revenue shortfall. As a result, the diesel price will rise by Rs. 10 per litre.
The projected PDL collection is only Rs. 680 billion, compared to the government’s target of Rs. 855 billion. The government has therefore decided to raise the PDL on diesel in two steps in order to close this Rs. 175 billion gaps. On March 1, a fee of Rs. 5 per litre will be implemented, and on April 1, 2023, a further fee of Rs. 5 per litre will be introduced.
The government currently receives Rs. 50 in taxes per litre of gasoline and High-Octane. The tax on diesel is currently set at Rs. 40 per litre. It is important to note that the government has pledged to the International Monetary Fund (IMF) to increase the tax on all petroleum products to Rs. 50.
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Diesel has a monthly consumption of over 500,000 metric tonnes and is primarily used in transportation and agriculture. Farmers beginning the crop-sowing season are anticipated to be impacted by the levy increase. Additionally, intercity commuters will be impacted because of the increase in fares following the imposition of this additional PDL.
The price of gasoline in Pakistan was raised by Rs. 22.20 per litre last week, and the new rates took effect on February 16th, 2023. The cost of High-Speed Diesel (HSD) has also gone up, according to the Finance Ministry, by Rs. 17.20 per litre.
Petrol now costs Rs. 22.20, which is how much the price of petroleum products increased. Kerosene oil costs Rs. 12.90, High-Speed Oil costs Rs. 17.20, and Light-Speed Diesel (LDO) costs Rs. 9.68.
Current fuel costs in Pakistan following the most recent increase are:
Fuel costs Rs. 272 for gasoline, Rs. 280 for high-speed oil, Rs. 202.73 for kerosene, and Rs. 196.68 for light-speed diesel.
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