The federal government has decided to increase the petroleum development levy (PDL) on petrol by Rs. 5/ liter. This means the new PDL will be Rs. 55/liter instead of the current Rs. 50. The decision was taken after a $3 billion staff-level agreement signed between Islamabad and International Monetary Fund(IMF) on Friday.

As per media reports, the new PDL has been imposed from the start of the new fiscal year, i.e., July 1, 2023. Following is the current levy on petrol in Pakistan.

Meanwhile, the finance ministry has stated that PDL on high-speed diesel (HSD) will not be hiked, which is currently Rs. 50/liter.

Petrol and Diesel Prices

Earlier, Finance Minister Ishaq Dar announced an increase of Rs. 7.50/liter in diesel price, while there was no change in petrol prices. The minister emphasized the importance of ensuring that the benefits of these price reductions reach the public in various sectors.

He urged transporters and other diesel-consuming industries to pass on the relief to the consumers through reduced fares, enabling all segments of the economy to benefit from this positive development. It is worth noting that the government has maintained petrol prices at the same level since April 30, whereas high-speed diesel witnessed a decrease of Rs. 5 per liter during that period.

The recent decline in overall oil sales in Pakistan has been a cause for concern, with a 47% year-over-year drop recorded in April. From July to April of FY23, total sales have shrunk by 24% to 13.970 million tonnes. The decrease in sales has primarily been attributed to a significant decline in furnace oil and diesel sales.

As the government takes proactive measures to address the economic challenges, reducing fuel prices brings a ray of hope for consumers, providing some relief from the burden of high living costs.

What do you think about the government’s decision to increase the levy on petrol? Please share your thoughts in the comments section.