ISLAMABAD: The government has slapped a petroleum levy of Rs5.62/litre on motor gasoline (petrol), which increased the retail price of the fuel by Rs10.49 to stand at Rs137.79/litre for consumers.
The government has falsely been claiming that it did not pass on the full burden of the spike in international petroleum prices on to the domestic consumers.
There is a price lag of month and a half. The government procured crude oil through imports when POL prices stood at $76 to $78/barrel in the international market, whereas the Ministry of Finance has given an impression that the POL prices escalated to $85/barrel in the international market on October 15, 2021.
Fact is that when the oil container procured at the cost of $85/barrel would arrive in Pakistan, the government would have to further hike POL prices by Rs5-6 per litre.
The government has added the levy on both petrol and diesel so it could raise the prices of petroleum products to double digits for meeting the International Monetary Fund (IMF) conditions.
Meanwhile, the government has been charging Rs25.22/litre taxes, duties, margin and petroleum levy on petrol.
The PSO cost of petrol supply stands at Rs112.57/litre and there is charge of IEFM to the tune of Rs3.90/litre.
There is margin of oil marketing companies (OMC) of Rs2.97/litre and dealers commission of Rs3.91/litre. The petroleum levy notified by the federal government stands at Rs5.62/litre so with inclusion of all these heads the price of petrol calculates at Rs128.97/litre. The government has charged GST at rate of Rs8.82/litre so the retail price comes at Rs137.79/litre in the country.
Now, Ministry of Finance claimed on Saturday that the government increased petrol price by Rs10/litre which stands at 8 percent. The International market had witnessed surge in prices by 10 to 15 percent, but the government hiked the prices by just 8 percent.
The Finance Ministry spokesperson stated that the devaluation of rupee against dollar was resulting into increase in POL prices. The prices of POL in Pakistan are lower than other regional countries, including Bangladesh, India and Sri Lanka.
In the future, the government would make efforts to pass on fewer burdens on consumers than the surge witnessed in international market, the spokesperson concluded.