July-Feb 2024-25: More revenue likely by increasing PL by Rs10/litre

ISLAMABAD: The federal government anticipates generating additional revenue from March 15 to 31 by increasing the petroleum levy (PL) on petrol and high-speed diesel (HSD) by Rs10 per litre. This raises the PL from Rs60 to Rs70 per litre.

The petroleum levy has generated Rs718 billion in the first eight months of the current fiscal year (July-February 2024-25), against an annual target of Rs1.28 trillion, according to sources in Petroleum Division.

On Saturday, the prime minister announced to maintain existing petroleum prices, with the intended relief being passed on to consumers through reduced electricity bills.

H1FY24: Govt collects Rs472.7bn petroleum levy

Petroleum product sales have increased by 4.0 percent year-over-year, reaching 10.55 million tonnes in the first eight months, compared to 10.18 million tonnes in the same period last year.

The government has revised upward the PL rate on both petrol and HSD by Rs10 per litre from Rs60 to Rs70 per litre for the current fortnight. The PL on kerosene oil raised by Rs10.96 per litre and light diesel oil (LDO) Rs7.75 per lire and HOBC Rs50 per litre.

According to documents, the expected raise in the ex-refinery price of petrol was Rs9.53 per litre following reduction in average of platts with incidentals and duty by Rs12.71 per litre from Rs173.33 to Rs160.61 per litre and levy of Rs3.18 per litre Pakistan State Oil (PSO) exchange adjustment.

The IFEM has been reduced by 46 paisa from Rs5.79 to Rs5.33 per litre on petrol.

HSD ex-refinery prices were reduced by Rs9.17 percent from Rs178.90 to Rs169.73 per litre. This include reduction in average of platts with incidental and duty by Rs9.36 per litre from Rs177.56 to Rs168.20 per litre and PSO exchange rate increase by 19 paisa from Rs1.34 to Rs1.53 per litre.

The IFEM has been reduced to 62 paisa from Rs2.92 to Rs2.30 per litre.

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