In a recent press conference held by Finance Minister Ishaq Dar, the government made an announcement regarding the prices of petroleum products in Pakistan.
While the price of petrol remains unchanged, there has been an increase in the price of diesel. This article aims to provide a comprehensive overview of the new diesel prices and the government's decision.
The Announcement
Finance Minister Dar clarified that there would be no increase in the price of petrol, much to the relief of consumers. However, the price of diesel has been raised by Rs7.50 per litre. This adjustment in diesel prices will come into effect from 12:00 am on July 1, 2023.
To provide a clear understanding of the changes, let's take a closer look at the existing prices and the new prices set by the government:
| Product | Existing Prices (w.e.f 30.06.2023) | New Prices (w.e.f 01.07.2023) | Change |
|---|---|---|---|
| Petrol | Rs262 | Rs262 | None |
| Diesel | Rs253 | Rs260.50 | +7.50 |
It is worth noting that while petrol prices remain stable, diesel prices have experienced an increase as per the government's decision..
Previous Speculations
Before the government's official announcement, there were speculations regarding a potential increase in the Petroleum Development Levy (PDL) on both petrol and diesel, effective from July 1, 2023.
According to earlier media reports, the government was considering raising the petroleum levy from Rs50 to Rs55 per litre for both petrol and diesel.
However, it is essential to highlight that the government now has the authority to amend the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961), without the need for parliamentary approval. This amendment grants the government the power to adjust the maximum limit of the petroleum levy.
Ministry of Finance's Statement
The Ministry of Finance has recently informed the Senate Standing Committee on Finance about the petroleum development levy. The levy has been calculated at Rs60 per litre for the next fiscal year, aiming to generate revenue of Rs879 billion.
This revenue target is significantly higher compared to the revised target of Rs542 billion for the outgoing financial year 2022-23, which ended on June 30.
Implications and Significance
The government's decision to increase diesel prices and implement the petroleum development levy has both economic and social implications. The adjustments aim to address fiscal challenges, generate additional revenue, and ensure the sustainability of the petroleum sector. However, it is crucial to monitor the impact of these changes on various stakeholders, including consumers, businesses, and the overall economy.
Finance Minister Ishaq Dar announced that the prices of petrol would remain unchanged, while the price of diesel would increase by Rs7.50 per litre.
These adjustments will be effective from July 1, 2023, and are part of the government's efforts to manage fiscal challenges and enhance revenue generation in the petroleum sector. It is essential for consumers and stakeholders to stay informed about these developments and their potential implications.
