In order to comply with an IMF requirement for the bailout package, the federal government increased the Petroleum Development Levy (PDL) on petroleum products by five rupees per litre.
Govt hikes Petroleum Levy: With this increase, the PDL has increased to Rs 55 a litre, according to sources at the Ministry of Finance.
According to sources at the ministry, the High Speed Diesel (HSD) would not be subject to the increase and will continue to pay 50 rupees a litre.
The administration presented several revisions to its budget for the fiscal year 2023–2024, including adjustments to the petroleum code, in a last-ditch bid to secure a stalled IMF bailout.
According to sources, the government has also increased the freight margin on petrol by 2.51 rupees per litre.
According to sources, the freight margin on petrol has increased to Rs. 6.20 per litre. According to sources, the fuel dealers have a seven rupee profit per litre, while the oil firms have a six rupee profit.
According to sources, the base price of petrol was Rs. 187.80. Diesel has a freight margin of Rs. 2.31 per litre. The freight margin for diesel sold by the oil firms has increased by 27 paisa per litre.
Additionally, According to reports, the freight margin for diesel was negative 4.66 rupees per litre. According to sources, the oil companies’ profit margin on diesel has grown from six rupees per litre to Rs. 6.27 per litre.
According to sources, the base price of fuel was Rs. 201.89 per litre.
It is important to note that the Finance Bill 2023-2024, which gave the green light to the budgetary recommendations for the upcoming fiscal year, was enacted by the National Assembly last Sunday.
However, Consumers and industry stakeholders are worried about the effects that sharp increases in energy costs will have on businesses and the general cost of life.