ISLAMABAD: On the demand of International Monetary Fund (IMF), the PLM-N led coalition government has increased petroleum levy (PL) on petrol to all-time high 87 percent, charging Rs37.50 on per liter petrol from consumers.
The rate of Petroleum levy on petrol has increased from Rs20 per liter to Rs37.50 per liter on petrol while general sales tax (GST) has been kept at zero.
Raising Rs17.5 per liter levy on petroleum products effectively denied the relief that public supposed to receive amid considerable reduction in global oil prices and stable exchange rate.
Average of Platts with incidentals and duty has come down by Rs14.77 from Rs189.37 per liter in August 16 to Rs174.61 per liter in September 1.
The PSO exchange rate adjustment is up by 41 paisas from Rs8.02 per liter in August 16 to Rs8.43 per liter in September 1. The ex-refinery price is also reduced by Rs14.36 per liter from Rs197.39 per liter on August 16 to Rs183.04 per liter on September 1. The IFEM rates are also down by Rs1.08 per liter from Rs5.84 to Rs4.76 per liter on September 1.
The new price of petrol has been increased from Rs233.91 per liter to Rs235.98 per liter with effect from September 1.
According to media reports, the government has budgeted to meet the target of Rs750 billion PL in the current financial year. It plans to collect Rs10.5 percent GST and Rs37/liter PL, in addition to other charges like dealers’ and distributors’ margins. The government expects to collect Rs60 billion as PL and Rs31 billion as GST per month.
