Government Increased Petrol Levy by Rs. 14
The government, for this fortnight, decided to keep the petrol prices in Pakistan unchanged. The media reports called this decision political due to October 16 by-polls. Finance Minister Ishaq Dar, currently in Washington for an important meeting with global lending institutions, announced it through a video message, stating that the prices would remain unchanged from October 16 to 31.
Earlier, Oil and Gas Regulatory Authority (OGRA) recommended a decrease in petrol while increasing diesel, kerosene oil, and light diesel oil prices. However, after consultation with Prime Minister Shahbaz Sharif, Dar decided not to pass on the recommended price reduction and increase to the masses.
An Increase in Petrol Levy
However, the federal government increased the Petrol Levy (PL) after International Monetary Fund (IMF) expressed apprehension over the reduction of petroleum prices and PL during the last fortnight.
When Dar announced a reduction in petrol prices, former finance minister Miftah Ismail called it a “reckless move.” Although the government had promised an increase in PL with IMF, Dar reduced it by Rs. 5, taking it to Rs. 32.42 from Rs. 37.42.
And now, after concerns from IMF, the government has increased the PL by Rs. 14, taking it to Rs47.26. It is pertinent to mention that the government has promised to impose Rs. 50 per liter PL under the agreement with IMF.
In simple words, the government hasn’t passed on the benefit of lower global oil prices to the masses rather hiked up the PL. Meanwhile, the levy on diesel is reduced by Rs. 5.44, taking it to Rs. 7.14 from Rs. 12.58, another step against the IMF deal.
Current Petrol Prices in Pakistan
On September 30, newly appointed Finance Minister Ishaq Dar announced a slash of Rs. 12.63 in petrol price in Pakistan
After that reduction:
- Petrol now costs Rs. 224.80/liter from the previous rate of Rs. 237.43/liter.
- Meanwhile, the price of HSD was dropped by Rs. 12.13/liter, after which the new price is Rs. 235.30/liter.
- Similarly, LDO and kerosene oil prices decreased by Rs. 10.19 and Rs. 10.78, respectively. Kerosene oil now costs Rs. 191.83/liter, while the new price of light-speed diesel is Rs. 186.50/liter.
What do you think about the government’s decision to increase Petrol Levy? Share your thoughts in the comments section.