After maxing out on the legislated petroleum levy on petrol at 50 rupees per litre effective 1 November, the government raised the levy on high speed diesel (HSD) from 30 rupees per litre to 32.50 rupees per litre effective 1st January 2023.
The main petroleum levy revenue generators are petrol and HSD due to consumption and therefore their contribution to domestic inflation is significant. Consumption for the first fifteen days of January has been estimated at petrol (92 Ron) 382,120 metric tons, HSD 340,855 metric tons, SKO 4,000 metric tons and LDO 925 metric tons.
The PL on SKO has been decreased from Rs 13 per litre to Rs 4.34 per litre and PL on LDO reduced from Rs 17.32 per litre to Rs 8.56 per litre. For the first half of January, petroleum levy collections of Rs 25.9 billion from petrol, Rs 10.1 billion from HSD, Rs 36 billion from SKO, and Rs 16 billion from LDO have been projected.
Former Finance Minister Hafeez Ahmed Pasha told Business Recorder that losses are expected on account of the budgeted PL collection of Rs 750 billion revenue agreed with the IMF for the current fiscal year with an estimated collection for the year at between Rs 300-350 billion.
