Govt raises petroleum levy on petrol over IMF concerns: report – Financeupdates

• POL prices kept unchanged until November.
• Petroluem levy increased on petrol.
• Decision taken to allay IMF’s concerns.

ISLAMABAD: The Finance Ministry on Saturday increased the petroleum levy (PL) on petrol after the International Monetary Fund (IMF) raised concerns over the reduction in the POL prices for the previous fortnight, The News reported Monday.

Eyebrows were raised when Finance Minister Ishaq Dar announced to slash the prices of petrol and other petroleum products. Dar’s predecessor Miftah Ismail had termed the move “reckless”, triggering a strong response from him.

The government on Saturday increased the levy by Rs14.84 to Rs47.26 per litre on petrol, while reducing it on diesel, with an immediate effect from October 16, 2022, keeping the prices unchanged at Rs224.80 per litre and Rs235.30 per litre respectively.

The PL on petrol was Rs32.42 from October 1, 2022.

The increase in the petroleum levy on Mogas has been imposed because of the concerns shown by the IMF when the finance ministry reduced it on petrol by Rs5 to Rs32.42 from Rs37.42 per litre on October 1, 2022.

Under the agreement with the IMF, the government has to fetch a revenue of Rs850 billion during the current fiscal by jacking the Petroleum Levy up to Rs50 per litre on petrol and diesel.

However, it has reduced the levy on diesel by Rs5.44 to Rs7.14 per litre from October 16, 2022.

The petroleum levy on diesel was at Rs12.58 per litre from October 1, 2022.

Right now, the petroleum levy of Rs30 per litre stands on HOBC, Rs8.90 per litre on kerosene oil, light diesel oil Rs1.59, and E-10 gasoline Rs23.21 per litre.

On petrol, the inland freight equalization margin (IFEM) was reduced by Re0.52 to Rs2 per litre from Rs2.53.

The district margin, including the extra margin on petrol, stands at Rs3.68 per litre whereas dealers’ margin stands at Rs7 per litre.

On diesel, IFEM has increased by Re0.07 per litre to Rs1.83 from Rs1.76 per litre. Dealer margin on diesel also stands at Rs7 per litre and district margin, including extra margin, stands at Rs3.68 per litre.