Islamabad: Government has evolved plan to further enhance Petroleum Duty Levy (PDL) by Rs 5 per liter on petroleum products to retire circular debt in gas sector.

As per media reports, plan has been worked out for settlement of Rs 1700 billion out of Rs 3180 billion gas sector circular debt. This settlement includes Rs 1400 billion against non recovery, line losses and tariff differential and Rs 300 billion against tax and interest.

It has been told that circular debt of gas sector will be retired under the plan during 6 months.

It is part of proposals that petroleum duty levy be further enhanced by Rs 5 on petroleum products .

Proposal has been given that 550 billion rupees will be received due to imposition of additional PDL on gas. About Rs 700 billion will be adjusted for circular debt through dividend and imposition of additional tariff.

Sources said saving of Rs 500 billion will be made by reducing LNG cargoes under the project.

Approval for plan to retire circular debt of gas sector will be obtained from Prime Minister and ministry of finance.