In a significant announcement by Finance Minister Ishaq Dar, petrol prices in the country will remain unchanged. However, the diesel price will rise to Rs7.50 per litre.
The adjustment was shared with the public during a late-night press conference on Friday. The implementation of the new diesel price was set to begin from the stroke of midnight on July 1.
Expected Increase in the Petroleum Development Levy (PDL)
Earlier, reports had suggested an expected hike of Rs5 in the Petroleum Development Levy (PDL) on petrol and diesel starting July 1. The government considered boosting the petroleum levy from Rs50 to Rs55 per litre for petrol and diesel. This increase in the PDL would have to be enforced from the start of the next fiscal year.
Changes to the Petroleum Products (Petroleum Levy) Ordinance
The government, through the Finance Act 2023-24, proposed changes to the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961) mentioned in the Fifth Schedule, column (1). These proposed changes empower the government to increase the petroleum levy without the requirement of parliament’s approval, which was necessary before.
The Ministry of Finance informed the Senate Standing Committee on Finance that the petroleum development levy was calculated at Rs60 per litre. This calculation was necessary to reach its target of Rs879 billion in the next fiscal year. This target stands in contrast to the revised target of Rs542 billion for the outgoing financial year 2022-23, which ended on June 30.
