Partial relief provided to public, after levy on POL products increased exponentially

• The government took the opportunity to meet its tax revenue shortfall of over Rs300 billion and provided partial relief to the public by increasing the petroleum levy.
•  Levy on diesel was raised by Rs7.03 to Rs25.05 per litre for March, from Rs18 per litre in February. Meanwhile, the levy on petrol was increased by Rs4.75 to Rs19.75 from Rs15 per litre, an increase of over 30pc.

Could the government further reduce the prices of petroleum products? This is the question that is making rounds in the circles.

When we reviewed this question, it was learned that the government increased the petroleum levy to meet the shortfall in tax revenue.

The trade war between the US and China, alongside the emergence of the Coronavirus pandemic, caused the global economy to slow down, with crude oil falling to $45 a barrel.

Analysts predicted that with the fall in global crude, the government will provide huge relief to the public by significantly reducing the prices of petroleum products. However, the government took the opportunity to meet its tax revenue shortfall of over Rs300 billion and provided partial relief to the public by increasing the petroleum levy.

Petroleum levy on diesel was raised by Rs7.03 to Rs25.05 per litre for March, from Rs18 per litre in February. Meanwhile, the levy on petrol was increased by Rs4.75 to Rs19.75 from Rs15 per litre, an increase of over 30pc.

The same was the case with the levy on kerosene that was raised by Rs6.33 from Rs6 to Rs12.33, showing an increase of over 100pc.

In its monthly review, the Ministry of Finance reduced prices by Rs5 each per litre for MS (petrol) and High-Speed Diesel (HSD) and Rs7 per litre for Kerosene Oil (SKO) and Light Diesel Oil (LDO).

The Ministry of Finance stated that the government has decided to decrease the prices of petroleum products to provide relief to consumers. The government is committed to extending relief to masses whenever fiscal space becomes available.

The new price of petrol is Rs111.60 per litre after decreasing from Rs116.60 per litre. The price of HSD has also been reduced to Rs122.26 per litre from Rs127.26 per lire. The price of SKO has been reduced to Rs92.45 per litre from Rs99.45 per litre. The price of LDO has been slashed from Rs84.51 per litre to Rs77.51 per litre. According to the Ministry of Finance, a 4.2 percent decrease has been effected at the petrol price, 3.9 percent in HSD, 7 percent in SKO and 8.2 percent in LDO prices.