ISLAMABAD: Because of the outstanding preconditions of International Monetary Fund (IMF) for increase in oil development collection (PDL), price of high speed diesel (HSD) is estimated to go up by about Rs 8 per liter this weekend, while petrol is estimated to be about Rs 11 per liter cheaper.
This will strengthen the position of Pakistan for pay of $1.18 billion when it is taken up executive director of the IMF board on 24 August.
Older government officials said Dawn that both major petroleum products, HSD and gasoline, were set go down substantially with effect from August 1, but the three main factors are the depreciation of the currency, higher PDL and magnification in dealer commission – deprived consumers of benefit of international price cut.
These officials stated that government took preliminary action with IMF to raise PDL by Rs 10 per liter on HSD, kerosene and light diesel fuel (LDO) and 5 rupees per liter on gasoline up to ensure a uniform rate of 15 rubles per liter on all products on the site start of August. The current PDL is Rs 10 per litre. on gasoline for 5 rubles. on HSD, kerosene and LDO.
move part of measures to comply with IMF preconditions for release of $1.18 billion tranche
ESS has already Approximately 43% increase approved in dealer commission on petrol and increase 70pc on HSD up to 7 rupees per liter each, which will also exert additional influence of 2.10 and 2.87 rupees per liter on petrol and HSD respectively. Currency depreciation also negatively impacted relief otherwise due to consumers due to international price decline over in past two weeks.
Based on on international import price and exchange rate impact, HSD price supposed to go down about 3.30 rupees per liter and that of Gasoline has risen in price by about 19 rubles per liter. However, because of An increase of 10 rubles per liter. in PDL and an increase of Rs 2.87 per liter in dealer commission, VSD rate would instead rose in price by about 8 rubles per liter. Petrol price, on on the other hand, it will still go down by about 11 rupees per liter after negative adjustment of Increase by 5 rubles per liter in PDL and Rs 2.10 per litre.
So selling HSD from stock price valued at around Rs 244 for in first two weeks of August instead of Now gasoline is 236 rubles per liter. rate about 219 rubles per liter. instead of a little over 230 at the moment.
official said government could keep prices of POL products unchanged for next 15 days through transfer of increase in VSD rate for gasoline, but perhaps it was not option because of IMF restrictions.
14 July Prime Minister Shahbaz Sharif announced reduction of from 18 to 40 rubles per liter. in prices of various products like international prices went down. It was first time under PMLN coalition government reduced oil prices after power in in second a week of April.
From May 26 to July 1 petrol price increased by 66% or Rs 99 per litre, while HSD price walked up by 92% from May 26 from 144.15 rupees per liter, up at 132.39 per liter. Also the former depot price of kerosene is gone up up to 230.26 rupees per liter, up by 95% between May 26 and July 1. price of LDO went up up to Rs 226.15 on July 1, up 80 pcs from Rs 125.56 per liter on 26 of May, up about 100.59 rupees per litre.
By deal with IMF, government should gradually increase PDL on oil products to maximum of 50 rupees per liter to collect 855 billion rupees during current fiscal year.
The oil tax has come to an end on March 1 price revision as international prices went up and PTI government decided not only reduce gasoline prices at 10 rupees per liter, but also freeze it for next four months, i.e. to end of June. After initial hesitancy, the PML-N led coalition government raised oil prices from May 15 under a deal with the IMF.
The current goods and services tax zero on all key products, including gasoline, HSD, kerosene and LDO against 17 pcs. ordinary tax on goods and services. government is also payment of about 20 rupees per liter for an individual order duty on gasoline and HSD. Previous government made a commitment in December 2021 at the IMF for Increase by 4 rubles per liter in PL on in first of every month until maximum of 30 rupees per liter but went back on it on 28th of February.
Published in Dawn, July 30, 2022