Govt jacks up levy on petrol by Rs5 per litre

ISLAMABAD: The government Saturday decided to jack up the petroleum development levy (PDL) on petrol from Rs50 to Rs55 per litre following a $3 billion staff-level agreement signed with the International Monetary Fund (IMF) a day earlier.

The PDL on petrol has been imposed from the start of the new fiscal year, ie July 1 (today). Moreover, the ministry said there would be no increase in the development levy on high-speed diesel (HSD), which is Rs50 per litre.

A day earlier, Finance Minister Ishaq Dar announced that diesel prices had been increased by Rs7.50 for the next fortnight; however, he said petrol prices would remain the same.

“There has been no increase in the price of petrol,” said Dar in a late-night press conference.

The finance czar also shared that the new diesel price will be effective from July 1.

The government had sought powers for amendment of the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961) in the Fifth Schedule, in column (1) through the Finance Act 2023-24, which empowers it to hike the petroleum levy.

Earlier, it required approval of parliament to fix the maximum limit of petroleum levy.

The Ministry of Finance informed the Senate Standing Committee on Finance that the PDL was worked out at Rs60 per litre for achieving its target of Rs879 billion in the next fiscal year, against the revised target of Rs542 billion for the outgoing financial year 2022-23 ending on June 30.