AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

ISLAMABAD: The government has projected to collect Rs 76 billion additional revenue if it maximizes the petroleum levy to Rs 50 per litre on all petroleum products in the remaining five months (February-June) based on current fuel consumption and international oil prices.

This was revealed to Business Recorder by well-placed sources in the Petroleum Division.

Petroleum levy on petrol is already maxed out at Rs 50 per litre since November 2022. However, the estimated revenue impact, if the current rate of Rs 35 PL on high speed diesel (HSD) is raised by Rs 15 to Rs 50 the government would generate Rs 15 billion each month or Rs 75 billion till the end of the current fiscal year.

Raising PL on the other two petroleum products - kerosene oil (SKO) and Light Speed Diesel (LDO) would generate an estimated revenue of Rs 1 billion (Feb-June 2022-23), as consumption of these two items in total petroleum products is not more than 0.4 percent. Currently, Rs 6.22 per litre PL is being charged on SKO and Rs 30.45 per litre on LDO.

Fuel prices kept unchanged amid speculation

Sources maintained that the government is anticipating little change in consumption of petroleum products for the next five months premised on the trend observed duringthe first six months of the current financial year.

On Tuesday, Oil Companies Advisory Council (OCAC) released comparative data of sale of petroleum products July-December 2021 and 2022: petrol imports were down by 27 percent to 2.624 million tons and HSD imports declined by 38 percent to 1.285 million tons.

It has been projected that Brent crude would average $ 89.37 a barrel in 2023(currently at $ 88.15 per barrel). Pakistan relies on importing 60 percent HSD and 80 percent petrol to meet domestic consumption. Petroleum levy generated Rs 230 billion in the first half of the fiscal year, an official of Petroleum Division told Business Recorder on condition of anonymity – a mere 30 percent of the total budgeted PL target of Rs 750 billion for the current financial year.

“The final figure of actual PL on POL products collection in the first half of financial year will be released in the current month,” the official added.

The government under the contingency revenue measures agreed with the International Monetary Fund (IMF) to impose sales tax on petroleum products (up to the standard rate of 17 percent) if a month’s revenue collection data underperformed.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Aamir Latif Jan 25, 2023 11:52pm
If a mere 30% PL is collected by mid year, how come remaining target will be met in remaining 6-months. It should be anticipated that with economic slow down, consumption of petrol diesel will decrease further ... GoP gurus should have realistic analysis of trends and revenues, their goof up in estimates is causing pain to people and economy by increasing shortfalls. Reason for our miseries.. Too optimistic targets, never achieved.
thumb_up Recommended (0)