Govt pocketing Rs21.42 on one litre of petrol, Rs28.45 on diesel

ISLAMABAD: Though the government has reduced the GST on petrol to 1.43 percent, which amounts to Rs2.06 on one litre of new petrol price of Rs145.82 effective from November 5, 2021, it is still getting 10 percent customs duty (Rs9.74) per litre and Petroleum Levy at Rs9.62 per litre and this is how it is now pocketing Rs21.42 in the head of taxes and Petroleum Levy. However, the consumers also pay, according to the new build-up of POL prices effective from November 5, 2021, to oil marketing companies and dealers Rs10.96 on one litre petrol, which includes Rs4.08 as inland freight margin, Rs2.97 as margin of OMCs (oil marketing companies) and Rs3.91 as dealers commission. So in toto, the consumer pays Rs31.38 on one litre petrol whose ex-refinery price stands at Rs113.44 per litre.

Interestingly, the prime minister earlier refused to increase the POL price from November 1, 2021 against the massive hike recommended by OGRA, but after indication in this regard in his address to the nation, the government increased the petroleum products prices after 1am November 05 with massive hike by Rs5.72-8.14 per litre.

Likewise, in the new price of one litre diesel that has been jacked up to Rs142.62, the government is earning Rs28.45, which includes 10 percent customs duty (Rs10.29) per litre, Petroleum Levy of Rs9.14 and 6.8 percent GST that amounts to Rs9.02. In addition, on one litre of diesel, consumers also pay Rs7.97 to oil marketing companies and dealers in the shape of Rs1.11 as inland freight margin (IFM), Rs2.97 as OMCs margin and Rs3.30 as dealers commission. And this how the consumer pays Rs35.84 on one litre of diesel whose ex-refinery price is at Rs106.79 per litre.

The government is getting 17 percent GST on one litre of HOBC (High Octane Blending Component) with Petroleum Levy of Rs30 and dealers commission at Rs2.15 from the consumers.

And on kerosene oil whose new ex-refinery price stands at Rs102.70 per litre, the government is getting 6 percent GST, which is equal to Rs7.32 per litre with Rs2.06 Petroleum Levy. So the government is getting Rs9.38 from consumers on one litre of kerosene oil. Moreover, consumers also pay Rs4.45 in the shape of Rs1.58 as OMCs margin and Rs2.87 as IFM. The consumer pays the total amount of Rs13.83 on one litre of kerosene oil of which the new sale price stands at Rs116.53 per litre with effect from November 5, 2021.

However, the consumer is paying to the government the lowest-ever amount of Rs0.23 in the head of 0.2 percent GST on one litre of light diesel oil (LDO) whose new sale price is Rs114.07. The ex-refinery price stands at Rs110.94 per litre. The consumer also pays Rs1.29 as IFM and Rs1.61 as OMCs margin on per litre LDO price.