Besides elevating the domestic prices of POL products, the Government of Pakistan has also increased the petroleum levy by Rs. 4 per liter, effective from 16 February.
This hike comes in consideration of the federal government’s decision in November 2021 that the petroleum development levy (PDL) would be upped by Rs. 4 every month after an agreement with the International Monetary Fund (IMF).
In accordance with the revised rates, the petroleum levy on MS Petrol has been increased from Rs. 13.92 per liter to Rs. 17.92 per liter, and the surcharge on High-Speed Diesel (HSD) has been revised from Rs. 9.30 per liter to Rs. 13.30 per liter.
The Finance Division explained in a statement on Tuesday that the prices of petroleum products in the international market have had a drastic increase and are at the highest since 2014.
MS Petrol’s ex-refinery price increased from Rs. 121.68 to Rs. 129.48 on 1 February 2022 while the Inland Freight Equalization Margin (IFEM) went from Rs. 3.65 a liter to Rs. 3.68. The dealers’ margin remained unchanged at Rs. 4.90 per liter and the Petroleum Levy increased from Rs. 13.92 a liter to Rs. 17.92, which brought the total price to Rs. 159.86 per liter.
Similarly, the ex-refinery price of HSD was Rs. 131.09 per liter, with IFEM lowered to Rs. 1.95 per liter. With distribution and dealer margins unchanged, the Petroleum Levy increased from Rs. 9.30 to Rs. 13.30 per liter. Consequently, the total price of HSD is now Rs. 154.15 per liter.
