ISLAMABAD: This weekend, the price of high-speed diesel (HSD) is predicted to increase by about Rs. 8 per litre, while the price of gasoline is predicted to decrease by about Rs. 11 due to an outstanding precondition of the International Monetary Fund (IMF) for an increase in the petroleum development levy (PDL).
This will support Pakistan’s request for the $1.18 billion disbursement when the IMF executive board discusses it on August 24.
High-speed diesel
Senior government officials told that although the prices of the two main petroleum products, HSD and gasoline, were scheduled to decrease significantly starting on August 1, three key factors—currency depreciation, higher PDL, and increased dealer commission—kept consumers from taking advantage of the global price reduction.diesel
The government, according to these officials, agreed in advance with the IMF to raise PDL by Rs. 10 per litre on HSD, kerosene, and light diesel oil (LDO), and by Rs. 5 per litre on gasoline, to ensure a uniform rate of Rs. 15 per litre on all products at the beginning of August. PDL is currently Rs 10 per litre for gasoline and Rs 5 for HSD, kerosene, and LDO.
The ECC has already approved a 43 percent increase in dealers’ commission on gasoline and a 70 percent increase on HSD, both of which will cost an additional Rs2.10 and Rs2.87 per liter for gasoline and HSD, respectively. The consumer relief that would have otherwise been provided by the currency depreciation due to international prices
As a result, it is predicted that the HSD’s ex-depot sale price will be close to Rs244 for the first two weeks of August instead of Rs236 per liter at present and that the price of gasoline will be close to Rs219 per liter as opposed to slightly more than Rs230 at present.
According to the official, the government could have transferred the increase in the HSD rate to gasoline and kept POL product prices flat for the ensuing 15 days, but this may not have been an option due to IMF restrictions.
