Govt Denies Relief to Consumers By Jacking Up Petroleum Levy, Distribution Margin

Instead of passing on the benefit of Rs. 17.17 per litre reduction in the ex-refinery price of High-Speed Diesel to consumers, the government has jacked up the petroleum levy on the product by Rs. 12.41 per litre and distribution margin by Rs. 1.52 per litre.

Pakistani consumers have been deprived of the benefits of a reduction in international crude oil prices as the government has decided to keep the prices of High-Speed Diesel (HSD) and Petrol unchanged for the first fortnightly of December (Dec 1 to Dec 15), and jacked up the petroleum levy, distribution margin, IFEM and PSO exchange rate, according to official documents seen by ProPakistani.

The average platts with incidentals and duty of HSD has decreased by Rs. 19.17 per litre from Rs. 213.16 per litre in the second fortnightly of November to Rs. 193.99 per litre for the first fortnightly of December. After applying the PSO exchange rate adjustment of Rs. 2.01 per litre, the ex-refinery price of the HSD was Rs. 195.99 per litre which is Rs. 17.17 per litre less than the previous fortnightly ex-refinery price of Rs. 213.16 per litre.

Petroleum levy on High-Speed Diesel has been increased by Rs. 12.41 per litre from Rs. 12.59 per litre to Rs. 25 per litre. The distribution margin on HSD has been enhanced by Rs 1.52 per litre from Rs. 3.89 per litre to Rs. 5.41 per litre. The IFEM on HSD has also gone up by Rs. 3.24 per litre.

Similarly, the benefit of a reduction of Rs. 8.46 in the average platts with incidentals and duty on Petrol has also not been passed on to the consumers as the distribution margin on the product has been increased by Rs. 0.32 per litre.

The average platts with incidentals and duty of petrol has decreased by Rs. 8.46 per litre from Rs. 162.32 per litre in the 2nd fortnightly of November to Rs. 153.86 per litre for the first fortnightly of December. However, the PSO exchange rate adjustment was increased by Rs. 3.25 per litre.

IFEM on petrol has also been increased by Rs. 4.89 per litre from Rs. 1.80 per litre to Rs. 4.89 per litre. Similarly, the dealer margin on petrol has also gone up by Rs. 0.32 per litre from Rs. 3.68 per litre during the previous fortnightly to Rs. 4 per litre during the ongoing fortnightly.

Petroleum Levy on petrol has already reached its maximum level of Rs.50 per litre as per the government’s arrangement with the International Monetary Fund (IMF).


  • We will not forget about this during elections. The imported government will be crying like always.


  • close
    >