The government has earmarked the figure of Rs 32.554 billion for collection of petroleum development levy and gas development surcharge for the next fiscal year, starting from July 1, 2005. According to the Federal Budget for 2005-06, announced on Monday in Islamabad, the petroleum development levy is estimated at Rs 15.936 billion, while Rs 16.618 billion may be collected on account of gas development surcharge.
These figures are 27 percent higher than last year''''s revised target of Rs 25.605 billion, of which Rs 10.872 billion is from PDL and Rs 14.733 billion from gas development surcharge.
Announcing the federal budget for the current year in June 2004, the government had set a target of Rs 47.506 billion for PDL while Rs 15.023 billion was from gas surcharges.
Omar Ayub Khan during his budget speech said that the government took the hit of Rs 52 billion because of the rising oil prices and to benefit common man, frozen the prices. The prices of kerosene oil is Rs 28 per liter and diesel Rs 36.24 per liter, if we "wont have frozen the prices, the selling prices would be higher by Rs 7.74 and Rs 8.24 per liter respectively". The prices are cheaper compared to India, where the products are selling at Rs 40.12 and Rs 55.09 per liter respectively, he said.
A substantial decline was witnessed in the PDL during the current year because the oil prices had been estimated at $33 to $38 a barrel, whereas the crude oil prices at the international markets skyrocketed and touched an all time high of $59 for a barrel.
The significant increase in the prices of oil led to reduction in PDL and the government, to control inflation and to give benefit to the common people, froze oil prices for more than four months. Moreover, the government paid price differential of nearly Rs 3 billion from the total outstanding of Rs 10 billion of the oil marketing companies.
Oil imports in 10 months ended on April 30, 2005, rose 25 percent to $3.093 billion, as compared with $2.483 billion of the same period of last year. The petroleum products bills amounted to $1.3 billion, importing 4.546 million tons, while petroleum crude bill totalled $1.791 billion with quantity amounting to 7.474 million tons, showing an increase of 21 percent and 27 percent, respectively.
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