The government has pocketed Rs 58.533 billion petroleum development levy (PDL) from consumers during the first eight months (July-February) of the current fiscal year. Sources told Business Recorder that it is the actual collection of PDL in addition to Rs 12 billion PDL during the period under review, which the government is still to recover from Pak Arab Refinery (Parco).
The government had targeted Rs 14 billion PDL in the budget 2008-09 but due to reduction in global oil prices, the government has taken benefit by not passing on the whole impact of reduced oil prices to consumers and is collecting PDL to bridge the revenue shortfall. Against budget estimates, the government has collected Rs 49.2 billion surplus PDL during the period under review.
According to sources, crude oil price in international market stood at $147 per barrel in July 2008 and the government collected Rs 107 million PDL during the said month. After July 2008, crude oil prices started declining in international market due to economic recession in the world that provided an opportunity to the government for increasing PDL collection on petroleum products.
Sources said that the government collected Rs 1.999 billion PDL in August 2008 that further increased to Rs 2.817 billion in September 2008. The PDL collection was Rs 3.531 billion in October, Rs 8.882 billion in November last year due to further decline in oil prices in international market. The PDL collection jumped to a record level of Rs 11.503 billion in December 2008 as the government did not pass on the impact of reduced oil prices to consumers.
After getting loan under the standby arrangement from the International Monetary Fund (IMF) in November last year, the government kept the oil prices unchanged to fulfil the commitment of the IMF regarding the revenue collection. PDL is the non-tax receipt but the government is collecting it to meet the revenue collection target set by the IMF, sources said. During January of current calendar year, the PDL collection went up to Rs 15.979 billion that witnessed some decline due to slight increase in global oil price in February. The PDL collection during February 2009 stood at Rs 13.715 billion.
According to provisional estimates, the government estimated Rs 18 billion PDL collection in March. The PDL collection figure of March has not been finalised yet, sources said. Keeping in view the current trend in oil prices in international market, the government is hopeful to receive Rs 17.7 billion PDL during April 2009.
The government is currently collecting Rs 3 per litre PDL on JP-1, JP-4,JP-8, Rs 20.92 per litre PDL on premier motor gasoline (PMG), Rs 28.18 per litre on HOBC, Rs 13.81 per litre on kerosene oil and Rs 11.32 per litre PDL on light diesel oil. The PDL collection is in addition to Rs 7.95 per litre general sales tax (GST) on PMG, 9.94 per litre on HOBC, 7.15 per litre on kerosene oil and Rs 6.62 per litre GST on light diesel oil.
The government had made commitment to the World Bank to collect at least Rs 30 billion PDL on petroleum products from consumers in three months (Jan-March). The government had estimated to collect Rs 49.5 billion PDL during the said period of current calendar year. The government has received Rs 29.6 billion PDL only in two months (January-February 2009) that may go up to around Rs 47 billion in three months (January-March) of current year.
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