ISLAMABAD: Based on the existing petroleum levy (PL) and general sales tax (GST) on petroleum products, an estimated Rs8.98 per litre increase in petrol and Rs1.06 per litre in high-speed diesel (HSD) is worked out.

Sources in the petroleum division; however, said the government may adjust the PL rates on petroleum product to keep the prices unchanged for the next half of January 2023.

An estimated Pakistan State Oil (PSO)’s exchange rate adjustment is Rs5 per litre on petrol and Rs3.50 per litre on HSD. In the last 12 days, rupee value against the US dollar is increased from Rs225.93 to Rs227.72.

In case the government opted to increase the price, the price of petrol would go up from Rs214.80 per litre to Rs223.78 per litre and the HSD price would go up from Rs227.80 to Rs228.86 per litre. The expected prices of kerosene oil (SKO) is likely to go down from Rs171.83 to Rs168.73 per litre and light diesel oil (LDO) price would likely go down from Rs169 to Rs166.61 per litre.

After maxing out on the legislated petroleum levy on petrol at 50 rupees per litre with effective 1st November, the government raised the levy on HSD from 30 rupees per litre to 32.50 rupees per litre effective 1st January 2023.

The PL on SKO has been decreased from Rs13 per litre to Rs4.34 per litre and PL on LDO reduced from Rs17.32 per litre to Rs8.56 per litre. For the first half of January, petroleum levy collections of Rs25.9 billion from petrol, Rs10.1 billion from HSD, Rs36 billion from SKO, and Rs16 billion from LDO have been projected.

Copyright Business Recorder, 2023