The collection of Petroleum Levy (PL) levied on major petroleum products is expected to cross Rs 129 billion mark against the budgeted target of Rs 123 billion for the financial year 2014-15, Business Recorder has learnt. According to sources in the Ministry of Petroleum and Natural Resources due to enhanced consumption of Petrol and High Speed Diesel (HSD) in the country during past 7 months as a result of CNG stations closure in Punjab the PL collection increased.
On average during past 10 months PL collection was around Rs 10 billion per month, but during past three months it crossed Rs 11 billion mark and is forecast to generate Rs 129 billion by the end of the current financial year on 30 June, sources added. "By May 31, 2015 we have collected a total Rs 118 billion on account of PL and during the ongoing month another Rs 11 billion collection is expected so our final collection will be 129 billion", the official maintained.
In 2010-11, the government collected Rs 82.75 billion against the budgeted target of Rs 110 billion; in 2011-12 the government generated Rs 60.4 billion against budgeted target of Rs 120 billion, in 2012-13 government set a target of Rs 125 billion on account of PL but collected Rs 109 billion, and in 2013-14 Rs 120 billion target was set but the government collected Rs 104 billion.
PL is an important component of price build-up formula for petroleum products in Pakistan with a flat rate on petrol fixed at Rs 10 per litre, Rs 14 per litre on High octane Blending Component (HOBC), Rs 6 per litre on kerosene oil, Rs 8 per litre on HSD and Rs 3 on LDO: Price build-up also includes General Sales Tax (GST) which at present is 19 percent on petrol, 28 percent on HSD, 17 percent on HOBC and kerosene oil and 13 percent of LDO.
Additional levies on petroleum products are as follows: Inland freight margin, at Rs 3.36 per litre for petrol, HOBC Rs 2.76 per litre, HSD Rs 1.76 per litre, kerosene Rs 1.58 per litre and LDO Rs 1.61 per litre; distributors' margin for petrol at Rs 2.35 per litre, HOBC at Rs 1.72 per litre, kerosene oil at Rs 1.58 per litre, HSD Rs 2.35 per litre and LDO Rs 1.61 per litre, while dealers' margin stood at Rs 3.08 per litre, HOBC at Rs 2.15 per litre and HSD at Rs 2.60 per litre.
Since October 2014 to June 2015, the government brought the price of HSD from Rs 116 per litre to Rs 87.20 per litre, High Octane Blending Component (HOBC) from Rs 136 to Rs 84 per litre, Kerosene oil price from Rs 106 per litre to Rs 64.6 per litre and light diesel oil price from Rs 101 per litre to Rs 61.5 per litre. Price of petroleum products in Pakistan are uniform throughout the country, as there are no provincial taxes, though there is considerable smuggling from across the Iranian border which is sold at a price considerably lower than the applicable rate.