Levy increase expected as the government looks to increase petroleum prices
As per the sources, the government is preparing to increase the price of petroleum commodities from November 1. Increase in levy expected too. However, the government is undecided as to whether to increase the levy from November 1 or November 16.
Previously, Energy Minister Hammad Azhar revealed that the government is under enormous pressure to collect levy as the target for one month was reached in four months. As per the sources, the government is looking to increase at least Rs 4 in levy charges. Currently, petroleum levy is set up at 5.62 on petrol while high-speed diesel gives the government Rs 5.14 in the form of petroleum levy charges.
An increase of Rs10.49 per litre on petrol price was given approval by Prime Minister Imran Khan on October 15 which made the petrol price soar to Rs 137.79 per litre while an increase of Rs12.44 per litre was witnessed in high-speed diesel price which jacked the price to Rs134.48 per litre.
Oil and Gas Regulatory Authority (Ogra) has proposed an increase in petrol price for Rs 6 per litre while high-speed diesel price is expected to go up by Rs 8 per litre. Ogra has proposed this price after keeping levy and increase of petroleum prices in the international market. The summary has been sent to Prime Minister Imran who will either accept or reject the proposal to whether to increase the price of petroleum commodities or not.
Earlier in September, Minister for Planning and Development Asad Umar said the Pakistan Tehreek e Insaf government was charging only 16.4% taxes on petrol, which was about 33% less than in the time of Pakistan Muslim League-N (PML-N) when the tax rate was as high as 52%.
About recent taxes on petrol, he said the current Petroleum Development Levy was 5.62 rupees and sales tax was 11.76 rupees and total tax was 17.38 rupees per litre of petrol.
He said the base price of one-litre petrol was 105.92 rupees and the total price was 123.3 rupees, hence the taxation rate per litre was 16.4%, “which is less by one-third of the time of Pakistan Muslim League-N government when the tax was 52%”.
On September 15, the federal government had decided to increase the existing prices of petroleum products with the increase in the world market.