Unpopular decision to earn govt Rs29b

ISLAMABAD - The PPP-led government in a bid to meet its lavish expenditures is all set to pocket a hefty amount of Rs29 billion during current month in the shape of various levies imposed on POL products and Compressed Natural Gas (CNG) being charged from already over-burdened consumers.
Sources informed on Monday that sumptuous expenditures of money-starved PPP-led coalition government are being met with variety of levies/taxes already imposed on POL products and CNG resultantly inflation-hit consumers are bearing the brunt by paying sky-high prices of these products in the country. They said that as the federal government increases the prices of Petroleum Oil & Lubricants (POL) products each month in the name of hike in international market resultantly the ratio of direct and indirect taxes also witness increase, adding, that currently in accordance with the international market, the actual price of petrol is Rs73.58/liter, High Speed Diesel (HSD) oil Rs 82.95/liter, while Rs77.61/liter is of Light Diesel Oil (LDO) and Rs100.67/liter is of High Octane Blended Component (HOBC).
However, the federal government in its desperate bid to satisfy its unnecessary expenditures is already adding to the miseries of poor masses by collecting Rs3.17/liter from petrol, Rs2.26/liter from HSD, Rs3.18/liter from LDO while Rs4.92/liter from HOBC and Rs 3.25/liter from Kerosene oil in the name of Inland Freight Equalization Margin (IFEM). Likewise, in the name of distribution and dealer’s margin, the PPP-led government is collecting Rs4.35 per liter from Petrol, Rs3.96 per liter from HSD and Rs1.69 per liter from LDO, Rs3.87 per liter from HOBC while Rs1.58 per liter from Kerosene oil each month. Again, the government to meet its luxurious expenditures under the head petroleum levy (PL) and General Sales Tax (GST) is also collecting Rs24.58/liter from petrol, Rs18.97 from HSD, Rs 16.34/liter from LDO, and Rs 26.35/liter from HOBC while Rs18.85/liter from Kerosene oil.
The sources also informed that oil refineries in the name of decrease in the reduction of distribution of crude oil and reduced quantity of Sulphur in Diesel are further set to collect Rs 570 million from the over-burdened consumers this month despite the already imposition of variety of taxes. In this way, the federal government is set to collect Rs19 billion under the head of GST while Rs3 billion due to the increased price of CNG during the current month from the consumers.
Similarly, the outstanding dues of PARCO refinery worth Rs8 billion will also be collected from the consumers despite OGRA’s concerns in accordance with the government decision. Documents available with TheNation further reveal that Available cash-starved incumbent government despite OGRA’s objection has decided to collect worth Rs8 billion outstanding dues of PARCO refinery from the consumers. Earlier, on February 24, the Petroleum Ministry had advised the OGRA to pass it on to the consumers but later objected this Price Differential Claim (PDC) as there were differences in the sale and cost of POL products. Upon this, the regulatory authority replied to the government that un-audited dues of the refinery cannot be passed on to the consumers.
However, the Petroleum Ministry turning down the OGRA’s objection advised the OGRA to collect this heavy amount from the consumers. OGRA, while acting upon the decision of the government, has now given its approval to collect this heavy amount during four years so Rs160 million monthly will be collected from the consumers. Resultantly, Rs1.49/liter from Kerosene oil, 60Paisa per liter from Diesel, 38Paisa per liter from Petrol, Rs1.85/liter from HOBC and 91Paisa from LDO will be collected from the overburdened consumers with accordance to the recent approval of authority.

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