Govt hikes levy on petrol to Rs 37.5/litre

   

ISLAMABAD   -   Instead of passing the benefits of reduced international crude oil prices to citizens, the Pakistani government has jacked up petroleum levy on petrol by Rs 17.50/litre, for September, taking it to historical high of Rs 37.50/litre.

Despite reduction of Rs 14.36/litre in the ex-refinery petrol price, the government had raised its prices by Rs 2.07/litre, for the ongoing fortnightly of September by jacking up petroleum levy (PL) on the product by Rs 17.50/litre, official documents reveal. The ex-refinery prices of petrol has decreased from Rs 197.39/litre during 2nd fortnightly of August to Rs 183.04/litre during 1st fortnightly of September.

Petrol average platts with incidentals and duty has decreased by Rs 14.77/litre from Rs189.37/litre in the 2nd fortnightly of August to Rs 174.61/litre for the first fortnightly of September, but PSO exchange rate adjustment was increased by Rs 0.41/litre from Rs 8.02/litre to Rs 8.43/litre in September.

Even with the increase in PSO exchange rate adjustment, the ex-refinery price of petrol has decreased by Rs 14.36/litre from Rs 197.39/litre during 2nd fortnightly of August to Rs 183.04/litre during 1st fortnightly of September.

Instead of passing on some benefits of decrease in ex-refinery price to the consumers,   the government has jacked up the PL by Rs 17.50/litre instead of earlier Rs10/litre per month increase committed with IMF.

It is worth mentioning that earlier,  the government had announced that it will jack up PL by Rs 10/litre in July followed by monthly increase of Rs 5/ litre till it reaches to Rs 50/litre. But against its commitment, PL was increased by Rs 10/litre during August, while for September it has been raised by Rs 17.50/litre.

The consumers have been deprived of more than Rs 4/litre relief on petrol prices in September. The government had increased the price of petrol by Rs 2.07/litre for the 1st fortnightly of September. However, petroleum levy   on high speed diesel (HSD) has been slashed by Rs 2.50/litre from Rs 10/litre to Rs 7.50/litre.

High speed diesel average platts with incidentals and duty has increased by Rs 4.45/litre from Rs218.55/litre to Rs 223.00/litre for the first fortnightly of September. The PSO exchange rate adjustment was also increased by Rs 2.24/litre from Rs 3.63/litre to Rs 5.87/litre. The government has reduced PL on HSD by Rs 2.50/litre for September.

The government had increased the prices of HSD by Rs 2.99/litre for the first fortnightly of September.