ISLAMABAD: The government has raised the ex-depot prices of petroleum products, on Tuesday, in a bid to achieve a target of Rs500 billion from petroleum levy (PL) budgeted for the current financial year ending on June 30th. The government has announced to raise the ex-depot price of petrol by Rs2.13 per litre or almost two percent and per litre price of High Speed Diesel (HSD) has also been increased by Rs1.79 or 1.6 percent. The prices of other two petroleum products, kerosene oil (SKO) has been increased by Rs1.89 per litre or 2.3 percent and light diesel oil (LD) by Rs2.03 per litre or 2.6 percent.

The impact of petroleum products in international market in the last 15 days of June has partially be passed on to consumer by adjusting the rate of PL on the products, which has increased from Rs450 billion to Rs500 billion budgeted in the current financial year.

The Oil and Gas Regulatory Authority (Ogra) had computed an increase in rate or petroleum products based on June 1 level of PL, which was Rs4.80 per litre on petrol and Rs8.14 per litre on HSD and 17 percent General Sale Tax (GST). There was no PL on SKO and LDO and GST on both products were also reduced.

The new ex-depot price of petrol will be Rs110.69 per litre instead of Rs108.56 per litre, the rate of HSD is also increased from Rs110.76 per litre to Rs112.55 per litre.

The price of SKO is increased from Rs80 per litre to Rs81.89 per litre and LDO from Rs77.65 per litre to Rs79.68 per litre.

The PL rate on petrol is reduced to Rs 2.97 per litre with effect from June 16 from Rs 4.80 per litre. The cost of PSO supply/ ex-refinery price is increased to Rs 81.12 per litre from Rs 77.47 per litre and GST is increased to Rs 16.08 per litre from Rs 15.77 per litre due to increase in ex-depot price.

Sources said that the government also adjusted the PL on HSD which was Rs 8.14 per litre in first half of June and the cost of PSO/ ex-refinery price is also increase. The share of GST in total ex-depot price of HSD also increased. No notification was issued till filing of the story.

There is no PL on SKO, however, per litre collection of GST on SKO is reduced to Rs 5.14 per litre from Rs 6.71 per litre. The government is not charging PL on LDO too because of its low consumption.

Copyright Business Recorder, 2021