ISLAMABAD: The government on Saturday decided to raise the petroleum development levy (PDL) on petrol from Rs50 to Rs55 per litre exactly one day after the government and the International Monetary Fund (IMF) signed a $3 billion staff-level agreement.
The raise in the PDL on petrol would take effect from today, the start of the new fiscal year, ie July 1.
Earlier on Friday, Finance Minister Ishaq Dar announced that diesel prices had been increased by Rs7.50 per litre 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. He also said 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 said that the PDL was worked out at Rs60 per litre for achieving its target of Rs879 billion in 2023-24 fiscal year, against the revised target of Rs542 billion for the outgoing financial year ended on June 30.
