Govt to hike petroleum levy by Rs20 from Nov 16
The federal government has approved an increase in the petroleum development levy (PDL) from Rs30 to Rs50 per litre at the behest of the International Monetary Fund (IMF).
According to the statement issued by the Ministry of Finance, the meeting of the Economic Coordination Committee (ECC) under the chairmanship of Federal Finance Minister Ishaq Dar was held in the Finance Division.
Federal Minister for Planning Ahsan Iqbal, Federal Minister for Energy Khurram Dastgir, Former Prime Minister Shahid Khaqan Abbasi, Minister of State for Finance Dr. Aisha Ghaus Pasha, Minister of State for Petroleum Musadik Malik, Special Assistant to Prime Minister for Finance Tariq Bajwa, Special Assistant to prime minister on Revenue Tariq Pasha, Federal Secretaries, Chairman Federal Board of Revenue (FBR) and senior officers attended the meeting.
According to the press release, the Ministry of Energy (Petroleum Division) presented a summary regarding high speed diesel, gas oil premium and informed that between Oil Marketing Companies (OMCs) and Pakistan State Oil (PSO) OMCs are not in a favorable position to import high speed diesel due to difference in import premium which may also affect supply across the country.
The statement added that after detailed discussions, the ECC allowed a maximum premium of $15 per barrel for November and December 2022 to oil marketing companies other than PSO.
The ECC statement said that the FBR has presented a summary of the increase in sales tax on high octane petrol, which states that the rate of sales tax on petroleum products has been reduced to zero on February 1, 2022 due to which the pressure increased on the FBR in its efforts to achieve the revenue targets.
The statement furthered that after deliberation, the ECC has increased the petroleum levy from Rs30 to Rs50 per liter of research octane number (RON 95).
The ECC also approved a technical supplementary grant of Rs5 billion for the seventh census.