Govt increases petroleum levy on petrol over IMF concerns

Author: Web Desk

Following concerns from the International Monetary Fund (IMF) on the drop in POL prices over the previous two weeks, the Finance Ministry increased the petroleum levy (PL) on petrol on Saturday.

The government on Saturday increased the levy by Rs14.84 to Rs47.26 per litre on petrol, while reducing it on diesel, with an immediate effect from October 16, 2022, keeping the prices unchanged at Rs224.80 per litre and Rs235.30 per litre respectively.

The PL on petrol was Rs32.42 from October 1, 2022.

The increase in the petroleum levy on Mogas has been imposed because of the concerns shown by the IMF when the finance ministry reduced it on petrol by Rs5 to Rs32.42 from Rs37.42 per litre on October 1, 2022.

According to the agreement of the deal with the IMF, the government must raise Rs 850 billion in tax income during the current fiscal year by raising the Petroleum Levy to Rs 50 per litre on petrol and diesel.

However, it has reduced the levy on diesel by Rs5.44 to Rs7.14 per litre from October 16, 2022.

The petroleum levy on diesel was at Rs12.58 per litre from October 1, 2022.

Right now, the petroleum levy of Rs30 per litre stands on HOBC, Rs8.90 per litre on kerosene oil, light diesel oil Rs1.59, and E-10 gasoline Rs23.21 per litre.

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