For fortnight from May 1: Exchange rate adjustment on petrol, diesel allowed

ISLAMABAD: The federal government allowed per litre exchange rate adjustment of Rs1.14 per litre on petrol and 17 paisa on high-speed diesel (HSD) for the fortnight starting from May 1, 2024.

In the current fortnightly review of petroleum products, the government decreased ex-depot price of petrol by Rs5.45 per litre and HSD by Rs8.42 per litre

The document available with Business Recorder shows the exchange rate adjustment for PSO has added 13 paisa in the already permissible rate of Rs1.01 allowed last fortnight on petrol and 17 paisa per litre reduced on HSD as compared with 30 paisa allowed in the last fortnight ended on April 30, 2024.

The average of Platts with incidentals and duty in the last two weeks decreased on petrol by Rs4.36 per litre from Rs209.67 to Rs205.30 per litre and also reduced by Rs8.63 per litre on HSD from Rs210.37 to Rs201.74 per litre.

Ex-refinery prices for petrol decreased by Rs5.50 per lire from Rs210.68 to Rs205.18 per litre and reduced by Rs8.46 per litre on HSD from Rs210.07 to Rs201.61 per litre. Inland Freight Equalization Margin (IFEM) on petrol raised by Rs5 paisa per litre from Rs6.75 to Rs6.80 per litre and the new rate of IFEM on HSD is up to Rs3.75 from Rs3.71 per litre or 4 paisa raise.

Dealer margin, distant margin and extra margin on petrol were kept unchanged, however, 11 paisa down on HSD.

The rates of petroleum levy (PL) on both petrol and HSD have been kept at Rs60 per litre. Due to higher PL rates, the government has generated tax revenue from petroleum products, with a 98 percent rise compared to the same period last year. This surge in tax collection has amounted to Rs719 billion, marking a considerable increase from Rs362 billion in the previous year.

An amount of Rs869 billion was budgeted on account of PL during the fiscal year 2023-24, however, following an upward revision of PL from Rs50 per litre to Rs60 per litre on petrol and HSD in the current fiscal the government upward revised the target of PL in line with the IMF’s commitments to collect Rs918 billion.

Copyright Business Recorder, 2024