ISLAMABAD : October 31,2022: In order to meet International Monetary Fund (IMF) demands , the Shahbaz Sharif government has deprived the end consumers of the benefit of the reducing prices of oil in the international market and maintained the rates at the current level for next fortnight ending on November 15,2022.
Finance minister , Ishaq Dar, announced to keep the oil prices unchanged for next two weeks .
As per the government decision, the rates of petrol will remain the same i.e Rs 224.80 per liter. High speed diesel rates will remain at Rs 235.30 per liter .
.The rates of kerosin oil remain at Rs 191.83 per liter. Light diesel prices to also stay at Rs 186.50 per liter .
The Finance minister did not divulge the details as to why the prices of oil were not reduced to pass on the benefit of the lowering rates in the international market . But it ‘s understood that the government avoided to reduce the oil prices to adjust difference in local and global market in taxes being charged on sale of petroleum products .
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The government is adjusting the petroleum development levy (PDL) imposed on oil to meet the IMF demand .
As per agreement with IMF , the government is supposed to raise PDL on petroleum products by Rs 10 a liter per month to make sure that it collects targeted revenue from the sale of petroleum products to achieve revenue target of Rs 7250 billion in the current fiscal year .
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Taxes collected from sale of petroleum products is one of the major sources of revenue for the government.
IMF had shown annoyance over Ishaq Dar’s decision to pass on benefit of lowering prices of oil in the international market to the end consumers in September last.
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