The government has increased the petroleum development levy (PDL) for all POL products to meet an outstanding precondition of the International Monetary Fund (IMF).
On Sunday, the Federal Government reduced the price of petrol by Rs. 3.05, while the price of diesel saw an increase of Rs. 8.95. However, on the flip side, the government also increased the PDL on petrol by Rs. 10 per liter, while High-Speed Diesel (HSD), Kerosene Oil, and Light Diesel Oil saw an increase of Rs. 5 per liter.
The government also announced that it would not impose GST on POL products.
With an increase in PDL, the petroleum levy currently stands at Rs. 20 per liter for petrol, while for HSD, Kerosene Oil, and Light Diesel Oil, it stands at Rs. 10 per liter.
After an increase in PDL, the current price of petrol stands at Rs. 227.19 per liter, while HSD, Kerosene Oil, and Light Diesel Oil are being sold at Rs. 244.95, Rs. 201.07, and Rs. 191.32, respectively.
It is pertinent to mention here that the government, under its commitment to IMF, is supposed to increase PDL on all petroleum products to a maximum of Rs. 50 per liter. This would aid the government in collecting Rs. 855 Billion during the current fiscal year.
While the government has not imposed a sales tax on the POL products, it is charging Rs. 20 per liter custom duty on petrol and HSD.
Out of the box thinking is needed but unfortunately like previous govt this govt also lack competence. Why not vehicles more than 2000cc banned for some time. An average suv consume 3 times the fuel a 660cc car do. We are not rich nation. Stop every govt official free fuel. These little steps will make big difference in import bill.