PDC swells to Rs56.9bn in fortnight

May 12, 2022 (MLN): Due to keeping the prices of petroleum products unchanged, the amount of price differential claims (PDC) stands around Rs56.9 billion in the fortnight of May.

The government is bearing the PDC on petrol at Rs 29.60 per litre, HSD at Rs73.04 per litre, kerosene oil at Rs43.16 per litre and light diesel oil (LDO) at Rs64.70 per litre from May 1 to May 15.

The total subsidy for keeping oil prices unchanged came in at Rs39 billion during the second fortnight of April from 16 to 30 wherein the PDC on diesel stood at 51.52 per litre and on petrol, it was Rs21.30 per litre.

To note, the International Monetary Fund (IMF) has emphasized the need to reverse the unfunded subsidies which are the prior conditions for the ongoing $6 billion loan program. The government has assured the fund that it will increase the prices of petroleum products to fulfil this commitment.

Despite the assurance, the incumbent government has not increased the prices of petroleum products, apparently due to political backlash.

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