The federal government has fulfilled another condition of the International Monetary Fund (IMF) by increasing the petroleum development levy on high-speed diesel (HSD) by Rs. 5 per liter.
The development comes right after Finance Minister Ishaq Dar announced that the prices of both petrol and HSD will remain unchanged until 15 April.
The total levy on HSD is now Rs. 50 per liter, up from Rs. 45 per liter. This increase follows a similar hike in the petrol price which has already reached Rs. 50 per liter due to the previous increase.
While the Oil and Gas Regulatory Authority (OGRA) had recommended a reduction of Rs. 5 per liter on HSD to provide relief to the general public from inflation, the government instead decided to raise the petroleum development levy by Rs. 5 per liter.
Moreover, the petroleum levy on furnace oil has also been increased to Rs. 2.83 per liter. This move is expected to generate additional revenue for the government but may not be welcomed by the public who will have to bear the burden of the increased cost.
On a positive note, the development levy on light diesel oil (LDO) has been reduced by 80 paisas, which is now Rs. 13.78 per liter, down from Rs. 14.58.