Big Petroleum Levy on petrol raised, cut on diesel Repulsive

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 Petroleum Levy on petrol raised, cut on diesel Repulsive

ISLAMABAD: As of October 16, 2022, the government would maintain the rates at Rs224.80 per litre and Rs235.30 per litre, respectively, while increasing the Petroleum Levy (PL) on gasoline by Rs14.84 to Rs47.26 per litre and lowering it on diesel. Starting on October 1, 2022, the PL for gasoline was Rs32.42. Because of the IMF’s worries, an increase in the Petroleum Levy on Mogas has been implemented.

By Our Reporter
The date October 17, 2022, is in the file photo.
ISLAMABAD: As of October 16, 2022, the government would maintain the rates at Rs224.80 per litre and Rs235.30 per litre, respectively, while increasing the Petroleum Levy (PL) on gasoline by Rs14.84 to Rs47.26 per litre and lowering it on diesel. Starting on October 1, 2022, the PL for gasoline was Rs32.42.

When the finance ministry cut the petroleum levy on gasoline by Rs. 5 to Rs. 32.42 per litre from Rs. 37.42 on October 1, 2022, the IMF expressed concern, prompting the government to increase the levy on mogas. Senator Ishaq Dar, the finance minister, is now in Washington for meetings with IMF representatives.

According to the terms of the deal with the IMF, the government must raise Rs 850 billion in tax income during the current fiscal year by increasing the Petroleum Levy to Rs 50 per litre on gasoline and diesel.

On the other hand, starting on October 16, 2022, the tax on diesel would be decreased by Rs5.44 to Rs7.14 per litre. From October 1, 2022, the Petroleum Levy on diesel was Rs12.58 per litre. Additionally, the government maintained the cost of fuel at Rs235.30 per litre.

The current petroleum levy rates are Rs30 per litre for HOBC, Rs8.90 for kerosene oil, Rs1.59 for light diesel oil, and Rs23.21 for E-10 gasoline.

The inland freight equalisation margin (IFEM) for gasoline dropped from Rs2.53 to Rs2.50 per litre, a reduction of Re0.52. The district margin, which includes the additional margin on gasoline, is Rs3.68 per litre, compared to the dealers’ profit of Rs7 per litre. IFEM for fuel has gone up Re0.07 per litre to Rs1.83 from Rs1.76 per litre. Additionally, the district margin, which includes additional margin, is Rs3.68 per litre and the dealer margin for diesel is Rs7 per litre.