Petroleum levy has to be increased by Rs50 under IMF conditions; oil extends losses on recession fears
Islamabad: (Staff reporter) The decision to increase the petroleum products prices’ have been delayed as Prime Minister Shehbaz Sharif, the person to give the final nod on such recommendations, was not in the country, sources said.
The government has assured the International Monetary Fund to “increase the petroleum development levy (PDL) up to Rs50 till January”. Such a promise was made when Pakistan received the letter of intent (the document outlining the general plans of an agreement).
PDL of around Rs10 on petrol and Rs5 on diesel was supposed to be increased in the first week of this month, sources. But, PM Shehbaz’s trip to Samarkand, Uzbekistan to attend the Shanghai Cooperation Organisation (SCO) summit delayed the decision.
Petrol prices are increased on the Oil and Gas Regulatory Authority summary. The recommendations are put forward in view of the international market prices and the PDL.
Fuel is being sold at Rs233.91 in Pakistan after an Rs6.72 increase on August 15. However, the federal government reduced high-speed diesel and kerosene rates by slight margins in view of varying oil costs in the international market and exchange rate variation.
The PTI and many journalists have expressed that the government’s decision to increase fuel prices would prompt the people to go against it. But, there have been some people calling for making careful statements on such developments as Pakistan was trying to bring its current account in balance.
Moreover, the country was also dealing with the increasing rates of the dollar amid the flood situation and the rising greenback demand for import payments. Some currency experts have urged the government to control the grey market which has come to light after the dollar’s apparent smuggling to Afghanistan and Iran.
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