Diesel Price to Increase by Rs. 10/Liter
To meet a revenue shortfall, the federal government has decided to increase the petroleum development levy (PDL), commonly known as the petrol levy, on diesel in the coming two months. This will result in an increase in diesel price by Rs. 10 per liter.
The government has set a target of Rs. 855 billion in PDL; however, the projected collection is only Rs. 680 billion. Therefore, to fill this Rs. 175 billion gap, the government has decided to increase the PDL on diesel in two steps. Rs. 5/ per liter will be imposed on March 1, while another Rs. 5 per liter will be added on April 1, 2023.
Currently, the government is receiving Rs. 50 levy per liter on petrol and High-Octane. Meanwhile, the levy on diesel stands at Rs. 40 per liter. It is pertinent to mention that the government has promised the International Monetary Fund (IMF) to take the levy to Rs. 50 on all petroleum goods.
Diesel is primarily used in agriculture and transport and has a monthly consumption of over 500,000 metric tonnes. The increase in the levy is expected to affect the farmers entering the crop-sowing season. Also, it will affect inter-city commuters as the fares would go up after the imposition of this additional PDL.
Last Increase in Fuel Prices
Last week, the petrol price in Pakistan was increased by Rs. 22.20 per liter, and the new prices were applicable from February 16, 2023. As per the Finance Ministry, the price of High-Speed Diesel (HSD) has also been increased by Rs. 17.20 per liter.
This is how much the prices of petroleum goods were increased, Petrol Rs. 22.20. High-Speed Oil Rs. 17.20, Kerosene Oil Rs. 12.90, and Light-Speed Diesel (LDO) Rs. 9.68.
After the last hike, the current fuel prices in Pakistan are:
Petrol Rs. 272
High-Speed Oil Rs. 280
Kerosene Oil Rs. 202.73
Light-Speed Diesel Rs. 196.68
What is your take on the expected increase in diesel price? Please share your thoughts in the comments section.