The federal government has granted itself the authority to increase the petroleum tax in its discretion through a presidential regulation, which effectively removes any upper limit previously imposed on the tax.

Previously, Petroleum Development Levy (PDL) had a maximum ceiling of RS 60 per day. Liters, which was later increased to Rs 70 per liter. Liter.

However, after the issue of the presidential ordinance, there is now no Cap on the tax amount.

According to details, a presidential regulation was issued on Tuesday to abolish the fifth schedule that had controlled borders of the petroleum tax.

With the repealed schedule, the government is no longer bound by any restrictions and can now impose on the tax in any case it chooses.

Sources said the government, according to the now-missed fifth schedule, was legally limited to a ceiling of RS 70 per year. Liter, but this condition no longer applies.

Despite a decline in global oil prices, the government chose not to transfer the benefit to the public. Instead, it increased the petroleum tax via the regulation.

Under the new Ordinance:

• The tax on gasoline has been increased by RS 8.02 per year. Liters, which brings the total tax to Rs 78.02 per liter. Liter.

• The tax on diesel is increased by RS 7.01 per. Liters, which brings the total amount to Rs 77.01 per liter. Liter.

Despite these increases, the Ministry of Finance has issued a notification that oil prices will remain unchanged in the next 15 days.

Earlier, the federal government did not decided to reduce domestic oil prices and instead choose to award the savings to key infrastructure and development projects in Balochistan, according to a statement from the Prime Minister’s Office (PMO) on Tuesday.

Prime Minister Shehbaz Sharif announced during a federal cabinet meeting that the funds saved from the global oil price dip would be used to dualize the strategic N-25-Motorvej-Chaman-Quetta-Kalat-Khuzdar-Karachi route.