To raise around Rs 47 billion in income in November 2022, the government has raised the petroleum duty on gasoline to a record high of Rs 50 per litre.
The government has decided to increase the petroleum duty on petrol from Rs 47.50 to Rs 50 per litre, an increase of Rs 2.50, while maintaining oil product prices at their current levels for the first two weeks of November.
Following a decrease in the world crude market, the Oil and Gas Regulatory Authority (Ogra) has proposed a reduction of Rs 2.50 in the price of gasoline to ease the burden on oil users.
With the proposal, it was anticipated that gas prices would be reduced to reflect changes in the price of crude oil throughout the world. The administration, however, agreed on Monday to maintain the same rates for petroleum products for the week of November 1–15.
The cost of gasoline should have been reduced by Rs 2.86 per litre in accordance with the Platts data platform and the rupee-dollar exchange rate. The regulator did come up with a cut of Rs 2.50 per litre, though.
However, the government refused to lower prices for customers and instead raised the gasoline tax to Rs. 50 per litre in consideration of the federal budget for 2022–2023 and the IMF’s pledge (IMF).
Petrol, a fuel substitute for compressed natural gas (CNG) and a common fuel for vehicles and motorcycles, is now priced at Rs 224.80 per litre. Around 0.7 million tonnes of gasoline are estimated to be sold each month.
Due to gas shortages at Punjab’s CNG filling stations over the winter, its use is anticipated to increase a little. The sale of petroleum products is subject to two different taxes, the petroleum levy and the regular sales tax.
Right now, there is no sales tax on gasoline. The National Finance Commission (NFC) Award divides up the collection of sales taxes between the federal government and the provinces. The petroleum levy is still present in the government budget, nonetheless.