The International Monetary Fund (IMF) expressed worries about the decrease in POL prices over the previous two weeks and the Finance Ministry has raised the petroleum levy on petrol.
When Finance Minister Ishaq Dar declared that the price of petrol and other petroleum goods will be reduced, eyebrows were raised. The action had been described as “reckless” by Dar’s predecessor Miftah Ismail, prompting a vehement rebuke from him.
On Saturday, the government maintained the rates for petroleum products at Rs 224.80 per litre and Rs 235.30 per litre, respectively, while raising the fuel tax by Rs 14.84 to Rs 47.26 per litre and lowering it for diesel with immediate effect beginning on October 16, 2022.
Starting on October 1, 2022, the PL for petrol was Rs 32.42.
When the finance ministry decreased the petroleum levy on petroleum by Rs 5 to Rs 32.42 per litre from Rs 37.42 on October 1, 2022, the IMF expressed concern, which led to the increase in the petroleum levy on Mogas.
According to the terms of the deal with the IMF, the government must increase the petroleum levy on petrol and diesel to Rs50 per litre in order to generate Rs850 billion in revenue during the current fiscal year.
On the other hand, starting on October 16, 2022, the tax on fuel would be decreased by Rs 5.44 to Rs 7.14 per litre.
From October 1, 2022, the petroleum levy on fuel was Rs 12.58 per litre.
The current fuel duty rates for HOBC are Rs30 per litre, Rs 8.90 for kerosene oil, Rs 1.59 for light diesel oil, and Rs23.21 for E-10 gasoline.
The inland freight equalization margin (IFEM) for petroleum dropped from Rs 2.53 to Rs 2.50 per litre, a reduction of Re 0.52.
The district margin, which includes the additional margin on petroleum, is Rs 3.68 per litre, compared to the dealers’ profit of Rs 7 per litre.