AVN 65.10 Increased By ▲ 0.15 (0.23%)
BAFL 30.90 Decreased By ▼ -0.61 (-1.94%)
BOP 4.80 Increased By ▲ 0.01 (0.21%)
CNERGY 3.76 Decreased By ▼ -0.08 (-2.08%)
DFML 14.34 Decreased By ▼ -0.07 (-0.49%)
DGKC 41.02 Decreased By ▼ -0.58 (-1.39%)
EPCL 46.80 Increased By ▲ 0.10 (0.21%)
FCCL 11.30 Increased By ▲ 0.01 (0.09%)
FFL 5.00 Decreased By ▼ -0.05 (-0.99%)
FLYNG 5.78 Decreased By ▼ -0.04 (-0.69%)
GGL 10.30 Decreased By ▼ -0.15 (-1.44%)
HUBC 67.26 Increased By ▲ 1.62 (2.47%)
HUMNL 5.66 No Change ▼ 0.00 (0%)
KAPCO 27.89 Increased By ▲ 0.14 (0.5%)
KEL 2.18 Increased By ▲ 0.03 (1.4%)
LOTCHEM 24.80 Increased By ▲ 0.45 (1.85%)
MLCF 21.50 Increased By ▲ 0.02 (0.09%)
NETSOL 84.00 Decreased By ▼ -0.79 (-0.93%)
OGDC 86.20 Decreased By ▼ -1.05 (-1.2%)
PAEL 11.00 Increased By ▲ 0.02 (0.18%)
PIBTL 4.19 Decreased By ▼ -0.03 (-0.71%)
PPL 74.55 Decreased By ▼ -1.15 (-1.52%)
PRL 13.43 Decreased By ▼ -0.22 (-1.61%)
SILK 0.89 No Change ▼ 0.00 (0%)
SNGP 40.50 Decreased By ▼ -0.83 (-2.01%)
TELE 5.87 Increased By ▲ 0.02 (0.34%)
TPLP 15.44 Decreased By ▼ -0.20 (-1.28%)
TRG 112.12 Increased By ▲ 0.42 (0.38%)
UNITY 13.75 Decreased By ▼ -0.23 (-1.65%)
WTL 1.15 Decreased By ▼ -0.01 (-0.86%)
BR100 4,047 Decreased By -17.2 (-0.42%)
BR30 14,464 Decreased By -4.7 (-0.03%)
KSE100 40,530 Decreased By -203.4 (-0.5%)
KSE30 15,189 Decreased By -41.2 (-0.27%)
Markets

Component-wise breakdown of petrol price in Pakistan

  • Petroleum development levy at its highest, OMC margin to be reviewed
Published November 1, 2022
Follow us

As the government maintained petrol prices in its announcement on October 31, it reduced Inland Freight Equalisation Margin, but raised petroleum development levy to Rs50 – the highest permissible limit – to meet a key condition of the International Monetary Fund (IMF) programme.

Business Recorder takes a look at the component-wise breakdown of the petrol price in Pakistan, which currently stands at Rs224.8 per litre.

During discussions with the IMF after the new government took charge, the leadership agreed to earn Rs750 billion through petroleum levy. Dr Miftah Ismail, then the finance minister, had said the levy would be raised in a phase-wise manner.

Amendments to Finance Bill to be approved today

Now, it is at its highest level.

On June 29, 2022 the National Assembly had approved the amended Finance Bill 2022 which included imposition of petroleum levy up to Rs50 on POL [petroleum, oil and lubricant] products.

The government first imposed PDL in July and by August 1, it had raised the level to Rs20 per litre. In late August, global oil prices saw a plunge and the cost of imported fuel fell. The government took this opportunity to steeply hike the levy to Rs37.5 per litre.

Miftah says takes ownership of ‘all’ difficult decisions

In last days of September, the government cut the levy marginally to Rs37.42 and in October, it was further reduced to Rs32.42 per litre. In mid-October, the PDL again saw a sharp hike to Rs47.26 per litre. This became possible due to further drop in global oil prices.

Finally on October 31, 2022, the government hiked the PDL to its maximum level of Rs50 per litre.

With petroleum sales witnessing a 8% increase in October (0.68 million tonnes) on a monthly basis, this augurs well for government's revenue collection efforts.

Meanwhile, the Ministry of Energy (Power Division) has also presented a summary on revision of oil marketing companies (OMCs) margins on petroleum products. They currently stand at Rs3.68 per litre.

After a comprehensive discussion, the ECC approved the summary in principle and allowed the agreed revised margin to Rs6 per litre, reflecting an increase of 63.04%; however, its implementation will be subject to fiscal space in petroleum prices.


Also read:

Comments

Comments are closed.

samir sardana Nov 03, 2022 07:32pm
THE PDL IS A TOOL BY THE GOP,TO OUTSOURCE TAX COLLECTION,TO A OIL SOE,AND HAVE A LEVELISED LOAD,ON ALL PEOPLE. THE PEOPLE WILL THINK THAT,THE OIL SOE, IS GOUGING MONEY - AND THE GOP CAN QUOTE,NYMEX AND UKRAINE ! SO THE GOP IS DEFLECTING PUBLIC HATE, TO SOE AND GOP IS GETTING,ALL THE TAX MONEY AND IMF IS HAPPY AND PEOPLE ARE PAYING AND WHEN THE GOP WANTS THE OIL SOE,TO MAKE MONEY - IT CAN LOWER PDL, BUT REDUCE THE END USER RATES, BY LESS THAN THE PDL CUT,AND THEN, TAX THE OIL SOE PROFITS ! dindooohindoo THAT IS Y THE IMF RULES THE WORLD - THE HAVE THE WIN-WIN MAGIC FORMULA!
thumb_up Recommended (0)

Component-wise breakdown of petrol price in Pakistan

Intra-day update: rupee crosses 277 against US dollar

Saudi Arabia links oil refinery’s setup with political consensus

Panel asks PD to broker agreements between govt, gas producing provinces

Rules notified: FBR, banks can share info about civil servants’ assets

India’s Adani denies rise due to Modi as shares slump again

2 terrorists killed in North Waziristan: ISPR

Chinese spy balloon flies over the United States, Pentagon says

Smuggling not the main reason behind USD shortage: FBR

Dar approves proposal to raise $2bn from expats

1,100MW K-3 inaugurated, China praised