ISLAMABAD-The federal government is unlikely to impose additional Rs10 per litre Petroleum Levy (PL) on petrol and high speed diesel in one go from July 1, as currently consumers are paying up to Rs 67.50 per litre on these products on account of custom duty and PL.
The federal government has no intention of imposing additional Rs 10 per litre Petroleum Levy on Petrol and high speed diesel in one go. Increasing the maximum limit of PL to Rs 60 per litre doesn’t mean that the government will impose it anyway, rather it is dependent on the sale of the petroleum products and meeting the annual estimated Petroleum Levy collection target, official source told The Nation.
In case the sale of petroleum products increases in the upcoming fiscal year and the government is meeting its revenue target, then what is the need of levying additional Rs 10 per liter PL, the official asked? In budget 2023-24, the government had jacked up the Petroleum Levy by Rs 10 per litre from the earlier Rs 50 per litre to Rs 60 per litre. It is not for one month but for the entire year, he said. Therefore the perception of increase in petroleum levy by Rs 10 per liter from July 1 is not correct, the official said. 
The levy can be increased as per requirement, he added. The government can add the additional Rs 10 per litre in installments of Rs 2 or 3 per litre as per the government’s revenue requirement and sale of petroleum products. The existing price of petrol is Rs 262 per litre and consumers are paying 30.37pc or Rs 79.57 on one litre of petrol on account of custom duty, levy, dealer commission, and OMCs margin. The government is charging Rs 66.57 per litre from the consumers on account of custom duty and petroleum levy on petrol. The consumers are paying Rs 16.57 per litre custom duty on petrol at the rate 10 percent, and Rs 50 per litre as Petroleum Levy.
Similarly, the existing price of High Speed Diesel (HSD) is Rs 253 per litre and the consumers are paying Rs 80.50 per litre or 32 percent on account of duties, petroleum levy, dealer commission, and OMCs margin on HSD. The consumers are paying Rs7 per litre on account of dealer commission and Rs6 per litre on OMCs margin on diesel. Besides, consumers are paying Rs 67.50 per litre or 27 percent on account of custom duty and Petroleum Levy on HSD, which includes Rs 17.50 per litre custom duty at the rate of 10 percent and Rs 50 per litre petroleum levy. It is worth mentioning here that the government is currently charging no general sales tax on both petrol and HSD.