Hike in oil prices to raise GST on petroleum products to 9.9 percent

The recent hike in oil prices will help government to enhance revenue collection by 9.9 percent on account of General Sales Tax (GST) on petroleum products during on-going month (March). In addition to GST rate enhancement due to rise in oil prices, government has also increased rate of Petroleum Levy (PL) on petroleum products.
Though government claims to give Rs 5 billion subsidy during the current month despite increase in oil prices, it is silent over increase in revenue collection on account of GST and PL.
According to a notification issued by Oil and Gas Regulatory Authority (Ogra), rate of GST has been raised as follows: petrol from Rs 10.60 per litre to Rs 11.65 per litre, HOBC from Rs 12.59 litre to Rs 13.84 per litre, kerosene oil from Rs 10.31 per litre to Rs 11.33 per litre, Light Diesel Oil (LDO) from Rs 9.68 per litre to Rs 10.64 per litre and HSD from Rs 11.38 per litre to Rs 12.51 per litre.
PL on petroleum products has been raised as; PL on petrol from Rs 2.20 per litre to Rs 6.25 per litre, HOBC from Rs 4.84 per litre to Rs 9.80 per litre and HSD from Rs 0.55 per litre to Rs 3.75 per litre. The price of petrol had increased from $102.62 per barrel to $120 per barrel, kerosene oil from $109.60 per barrel to $128.74 per barrel and gas oil from 107.26 per barrel to $125.62 per barrel due to unrest in Middle East during month of February 2011.