In accordance with the agreement reached with the International Monetary Fund (IMF), the interim government has raised the petroleum development levy (PDL) on petrol to the maximum allowable limit of Rs60 per litre.
On Thursday, the Finance Division announced an upward revision in the price of petrol by Rs14.91 per litre and high-speed diesel (HSD) by Rs18.44 per litre.
As a result of this adjustment, the price of petrol has reached Rs305.36 per litre, while HSD is now priced at Rs311.84 per litre, marking the highest rates in the history of the country.
Pakistan committed to increasing the PDL to Rs60 on both petrol and diesel, and this was officially approved by the National Assembly through the Finance Bill of 2023 back in June.
— Ministry of Finance (@FinMinistryPak) August 31, 2023
According to insider information, diesel currently carries a PDL of Rs50 per litre, with a recent increase of Rs5 in the PDL for petrol in the most recent review of petroleum product prices.
It’s important to note that under the terms of the IMF agreement, the government can impose a maximum PDL of Rs60 on petroleum products, and any further increase in this levy requires approval from the parliament.
In a notification released on an unspecified date, the finance ministry attributed the rise in fuel prices to the “continuous upward movement of petroleum prices in the international market and fluctuations in exchange rates.”
Notably, on August 1, the government had raised petrol prices by Rs19.95 per litre and high-speed diesel by Rs19.90 per litre. Subsequently, on August 16, the prices of petrol and diesel were increased by Rs17.50 per litre and Rs20 per litre, respectively.