ISLAMABAD: The federal government has amended the increase in petroleum levy to Rs70 per litre on petrol and high-speed diesel (HSD) and high octane blending component (HOBC) in the Finance Bill, as opposed to the current maximum limit of Rs60 per litre, to generate Rs1,281 billion for the fiscal year 2024-25.
This amount is Rs201 billion higher than what was projected for next year under this head by the International Monetary Fund (IMF) in its second and final review under the Stand-By Arrangement (SBA) dated May 2024.
The government has further amended the PL rate on other petroleum products light diesel oil (LDO) and kerosene oil Rs50 per litre each. While the originally budgeted PL for the outgoing year was Rs869 billion, the budgeted amount for next year represents an increase of 47.4 percent.
Petrol, HSD prices likely to increase
The PL revenue has been given a high priority by successive federal governments as it is not part of the Federal Divisible Pool (FDP) that has to be shared with the provinces as per the National Finance Commission (NFC) formula.
On Friday, the government passed an Amendment of the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961). – In the Petroleum Products (Petroleum Levy) Ordinance, 1961 (XXV of 1961), for the Fifth Schedule.
Earlier, the government proposed an increase in PL to Rs80 per litre on petrol and HSD in the Finance Bill. Also proposed raise on other petroleum products like HOBC, LDO, and E-10 gasoline from Rs50 to Rs75 per litre. However, the PL rate for superior kerosene oil (SKO), widely used for cooking purposes, remains at Rs50 per litre.
Copyright Business Recorder, 2024
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