Govt Hikes Petroleum Levy on Petrol to Historic High of Rs. 37.5 per Liter

Petroleum levy (PL) on petrol has reached a historic high of Rs. 37.50 per liter after the government jacked up the levy by Rs. 17.50 per liter for September 2022.

Instead of passing on the benefit of reduction in International crude oil prices, the government has preferred to fill its kitty first and abnormally increased the Petroleum Levy on petrol, according to official documents available with ProPakistani.

Conversely, the petroleum levy on High-Speed Diesel (HSD) has been decreased by Rs. 2.50 per liter, from Rs. 10 per liter to Rs. 7.50 per liter.

Although the average platts with incidentals and duty of petrol has decreased by Rs. 14.77 per liter from Rs. 189.37 per liter in the 2nd fortnightly of August to Rs. 174.61 liters for the first fortnightly of September but PSO exchange rate adjustment was increased by Rs. 0.41 per liter from Rs. 8.02 liter to Rs. 8.43 per liter.

Despite the increase in PSO exchange rate adjustment, the ex-refinery price of petrol has decreased by Rs. 14.36 per liter from Rs. 197.39 per liter during the 2nd fortnightly of August to Rs. 183.04 per liter during the 1st fortnightly of September.

However, instead of passing on some benefits of a decrease in ex-refinery price to the consumers, the government has jacked up the PL by Rs. 17.50 per liter instead of the earlier Rs. 10 per liter per month increase committed with IMF. The consumers have been deprived of Rs. 4 per liter relief on petrol prices in September. The government has increased the price of petrol by Rs. 2.07 per liter for the 1st fortnightly of September.

On the other hand, the average platts with incidentals and duty of HSD has increased by Rs. 4.45 per liter from Rs. 218.55 per liter to Rs. 223.00 per liter for the first fortnightly of September. The PSO exchange rate adjustment was also increased by Rs. 2.24 per liter from Rs. 3.63 per liter to Rs. 5.87 per liter.

The government has reduced PL on HSD by Rs. 2.50 per liter. The government has increased the prices of HSD by Rs. 2.99/liter for the first fortnightly of September.