July 29, 2022 (MLN): The government is likely to increase petrol and diesel prices by up to Rs10 per litre on the back of a rise in petroleum dealers’ margins.
Yesterday, Federal Minister for Finance and Revenue Mr Miftah Ismail, in a meeting of the Economic Coordination Committee (ECC), approved petroleum dealers’ margin at Rs7.00/litre for Motor Spirit (MS) and High-Speed Diesel (HSD).
It was informed that the existing margins were fixed in December 2021 and Pakistan Petroleum Dealers Association has approached the government for immediate revision of their margins due to inflation, increase in tariff salaries and utility bills, etc.
On July 14, 2022, Prime Minister Shehbaz Sharif announced a reduction in petrol and diesel prices by Rs18.50 to Rs230.24 per litre and Rs40.54 to Rs236 per litre, respectively due to the decline in oil prices in the international market.
The sales tax on all petroleum products still stands at zero while the government is collecting Rs10 per litre as petroleum levy on petrol and Rs5 per litre as PL on diesel, light diesel oil and kerosene oil.
It is pertinent to note that govt has agreed with International Monetary Fund (IMF) to impose a petroleum levy of Rs50 per litre in FY23.
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