On Monday the government decided not to increase petroleum prices for the next 13 days.
Hence, this came to be the break from the continuous price increases over the past five consecutive fortnights. This was despite an increase in international oil prices over the last 15 days. Bye-elections to seven seats of the national and provincial assemblies are scheduled to be held over the next 13 days to complete the electoral college for the senate elections fixed on March 3.
For sustaining the prices at the existing level, the petroleum levy (PL) was reduced by Rs3.07 on petrol to Rs17.97 per litre instead of Rs21.04. The PL on HSD is down Rs3.75 per litre to Rs18.36 instead of Rs22.11. Also, the PL on kerosene came down by Rs2.78 per litre to Rs2.76 instead of Rs5.54 per litre at present. The PL on LDO was also reduced by Rs3.26 to Rs3.65 from Rs6.91 per litre.
According to a statement issued by Prime Minister Office, “Prime Minister Imran Khan has rejected a summary from the Oil & Gas Regulatory Authority (Ogra) for the proposed increase in the prices of petroleum products to provide relief to the people.”
Moreover, The government had already collected about 33pc higher than targeted revenue on petroleum products through petroleum levy in the first six months of the current fiscal year a government official stated. Therefore, it was comfortable with minor adjustments in petroleum levy. According to the Ministry of Finance, the collection on account of petroleum levy has amounted to Rs275bn in the first six months against an annual target of Rs450bn.
According to the Ministry of Finance, the collection on account of petroleum levy has amounted to Rs275bn in the first six months against an annual target of Rs450bn.
However, over the last many months’ government has been trying to make alterations with petroleum levy rates instead of GST as levy remains in the federal kitty while GST goes to the divisible pool taxes and thus about 57pc share is grabbed by the provinces.