By raising the petroleum development charge on high-speed diesel (HSD) by Rs. 5 per litre, the federal government has met another requirement of the International Monetary Fund (IMF).
The move occurs immediately after Finance Minister Ishaq Dar declared that the price of petrol and HSD would not change till April 15th.
The total charge for HSD has increased from Rs. 45 per litre to Rs. 50 per litre. This increase comes after a previous one that caused the cost of petrol to rise similarly, reaching Rs. 50 a litre.
While the government chose to increase the petroleum development levy by Rs. 5 per litre, the Oil and Gas Regulatory Authority (OGRA) had suggested a reduction of Rs. 5 per litre on HSD to help the general public cope with inflation.
Also hiked to Rs. 2.83 per litre is the petroleum tax on boiler oil. Although the public will be required to face the burden of the increased cost, this action may not be well received as it is likely to enhance the government’s revenue.
The development levy on light diesel oil (LDO), which was formerly 14.58 rupees a litre, has been lowered by 80 paisas, or Rs. 13.78, which is a welcome development.