ISLAMABAD: Federal government has projected a revenue shortfall of Rs 175 billion in petroleum levy (PL) on petroleum products against the budgeted target of Rs 750 billion reportedly revised upward to Rs 855 billion in current fiscal year 2022-23, informed sources in Petroleum Division told Business Recorder.
The government will raise rate of PL on high speed diesel (HSD) by Rs 5 to Rs 50 per litre with effect from March 16, 2023 to reach its projection of Rs 680 billion, the sources maintained.
The projection of Rs 680 billion calculated on local fuel consumption, exchange rate adjustment and collection of PL in the first six months (July-December) 2022-23 stood at only Rs 177.805 billion (20 percent of targeted Rs 855 billion collection).
Petrol price reduced by Rs5; diesel’s remains unchanged
At present, PL on HSD is Rs 45 per litre andRs50 PL per litre on petrol since November last year as these two petroleum products are major sources of PL collection. The government is anticipating collection of Rs 503 billion in second half (January-June) of current fiscal year or Rs 83 billion per month.
The government is allowing Pakistan State Oil (PSO) Rs 27.83 per litre exchange adjustment on HSD and Rs 15.75 from March 1-15 but is not passing on the full impact of rupee loss against the US dollar which resulted in rising PSO receivables to the tune of Rs 48 billion.
The oil industry claimed that it has faced a huge loss of Rs35.88 billion in the wake of artificial control of the government over petroleum product prices out of which currency exchange loss is estimated at Rs32.6 billion for the second fortnight of February 2023 owing to the artificial adjustment of oil prices.
Imports of the overall petroleum group declined by 9.27 percent during the first seven months of the current fiscal year (2022-23) as compared to the corresponding period of last year, the Pakistan Bureau of Statistics (PBS) reported.
The total imports of the petroleum group during July-January (2022-23) stood at $10.6 billion, against imports of $11.69 billion during the same period last year, according to PBS data.
Copyright Business Recorder, 2023