PTI govt brings petroleum levy rates at 6-year lowest level

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The Pakistan Tehreek-e-Insaf (PTI) government has brought the petroleum levy rates at the lowest level of the last six years to give maximum relief to the common man.

At present, there is a levy of Rs2.97 on petrol per litre, Rs3.61 on high-speed diesel per litre, and no levy on kerosene and light diesel oil against the budgeted rates of Rs30 per litre on all products, said an official document available with APP on Wednesday.

“During the current financial year 2020-2021, the government has provided Rs252.41 billion subsidy to the consumer by keeping low petroleum levy rates against the budgeted rates Rs30/ltr on all products,” it added.

During the current fortnight, the government provided a subsidy of Rs27.03 per litre petrol, Rs26.39 per litre HSD, Rs30 each per litre kerosene and light diesel oil.

Since May 1, 2021, Oil and Gas Regulatory Authority (OGRA) recommended increasing the prices of petroleum products in the country after a substantial increase in the international market.

However, the government did not pass on the impact of the international market to the consumer to keep the prices at an affordable level and provide relief to the consumer by reducing taxes’ rates.

On June 16, 2021, OGRA informed that prices of petroleum products in the international market have increased (by Rs4.27/ltr in Petrol, Rs3.58/ltr in HSD, Rs3.77/ltr in SKO, and Rs4.05/ltr in LDO), but the government again did not pass on the full impact. “It only passed on a 50 per cent increase to the consumer and absorbed a loss of about Rs1.86 billion through reducing correspondingly the GST and Petroleum Levy rates to provide relief/subsidy to the consumer and keep the prices at an affordable level.”

The government followed the policy to maintain the prices at an affordable limit, contrary to the hike in petroleum prices in the international market, while other countries in the region followed the international rising trend and increased the petroleum prices.—APP

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