Petroleum Levy on petrol raised, cut on diesel

ISLAMABAD: The government has increased the Petroleum Levy (PL) by Rs14.84 to Rs47.26 per liter on petrol, while reducing it on diesel, with an immediate effect from October 16, 2022, keeping the prices unchanged at Rs224.80 per liter and Rs235.30 per liter respectively. The PL on petrol was Rs32.42 from October 1, 2022.

The increase in the Petroleum Levy on Mogas has been imposed because of the concerns shown by the IMF when the finance ministry reduced it on petrol by Rs5 to Rs32.42 from Rs37.42 per liter on October 1, 2022. Finance Minister Senator Ishaq Dar is currently in Washington for talks with the IMF officials.

Under the agreement with the IMF, the government has to fetch revenue of Rs850 billion during the current fiscal by jacking the Petroleum Levy up to Rs50 per liter on petrol and diesel.

However, it has reduced the levy on diesel by Rs5.44 to Rs7.14 per liter from October 16, 2022. The Petroleum Levy on diesel was at Rs12.58 per liter from October 1, 2022. The government also kept the diesel price unchanged at Rs235.30 per liter.

Right now, the petroleum levy of Rs30 per liter stands on HOBC, Rs8.90 per liter on kerosene oil, Light Diesel Oil Rs1.59, and E-10 Gasoline Rs23.21 per liter.

On petrol, the inland freight equalization margin (IFEM) was reduced by Re0.52 to Rs2 per liter from Rs2.53. The district margin, including the extra margin on petrol, stands at Rs3.68 per liter whereas dealers’ margin stands at Rs7 per liter. On diesel, IFEM has increased by Re0.07 per liter to Rs1.83 from Rs1.76 per liter. Dealer margin on diesel also stands at Rs7 per liter and district margin, including extra margin, stands at Rs3.68 per liter.