Petrol Prices Soar Petroleum Levy Hits Rs60 per Liter

In Pakistan, the government has decided to raise the cost of petrol to an all-time high. This decision is part of an agreement made with the International Monetary Fund (IMF), and it involves the Petroleum Development Levy (PDL), which is like an extra tax on petrol.

So, what does this mean for you? Well, the price of petrol is going up by Rs14.91 per liter, and the price of high-speed diesel (HSD) is also increasing by Rs18.44 per liter. This makes petrol cost Rs305.36 per liter, and HSD costs Rs311.84 per liter, which are the highest prices we’ve ever seen for fuel in Pakistan.

Back in June, the government agreed to increase this special tax, the PDL, to Rs60 on both petrol and diesel. Right now, there’s a Rs50 per liter tax on diesel, and the tax on petrol was raised by Rs5 recently when they reviewed fuel prices.

It’s important to know that under this agreement with the IMF, the government can’t tax petrol and diesel more than Rs60 per liter without getting permission from the country’s parliament.

The government says the reason for raising fuel prices is because the cost of petrol and diesel in the international market is going up, and the value of money (exchange rate) is also changing.

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Just to give you an idea, in August, the government increased petrol prices by Rs19.95 per liter and HSD by Rs19.90 per liter. Then, on August 16, they raised petrol prices by Rs17.50 per liter and HSD by Rs20 per liter.

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These frequent changes in fuel prices affect all of us because they impact our daily expenses and how much we pay for things like transportation. It’s a tough challenge for the government to balance the country’s finances while making sure people can still afford the things they need.