ISLAMABAD: The federal government has raised the levy on high-speed diesel (HSD) from 30 rupees per liter to 32.50 rupees per liter effective 1st January 2023.
Government had already raised petroleum levy on petrol at 50 rupees per liter effective 1 November.
Gasoline and HSD are the main petroleum levy income producers due to high demand, and as a result, they have a sizable impact on domestic inflation. Petrol (92 Ron) consumption was estimated at 382,120 metric tons, HSD at 340,855 metric tons, SKO at 4,000 metric tons, and LDO at 925 metric tons for the first fifteen days of January.
The PL on SKO has been decreased from Rs 13 per liter to Rs 4.34 per liter and PL on LDO reduced from Rs 17.32 per liter to Rs 8.56 per liter. For the first half of January, petroleum levy collections of Rs 25.9 billion from petrol, Rs 10.1 billion from HSD, Rs 36 billion from SKO, and Rs 16 billion from LDO have been projected.
July-December 2022 collections under petroleum levy were Rs96 billion (12.8 percent of the budgeted collection).
The Oil and Gas Regulatory Authority (Ogra) had recommended an increase of Rs 8.76 per liter in SKO and Rs 7.73 per liter in LDO price. The regulator worked out an increase in SKO price from Rs 171.80 to Rs 180.59 per liter and LDO from Rs 169 to Rs 176.73 per liter.
