A massive deviation is evident between the projection by the Petroleum Division of Rs 350 billion from petroleum levy (PL) for 2022-23, premised on maximising the levy to 50 rupees per litre on all petroleum products allowed under the existing legislation, the budgeted amount of Rs 750 billion and the International Monetary Fund (IMF) insistence that total collections under this head be raised to Rs 855 billion.
Discussions are underway between the government and the Fund; however, the government would have to re-legislate to raise PL from Rs 50 to Rs 70 per litre to generate Rs 855 billion in the remaining months (February-June) of the current year based on current fuel consumption, exchange rate and international oil prices.
From July to December 2022, around Rs 170-180 billion was collected as PL – 24 per cent of the total budgeted PL target.
Sources said that the final figure of actual PL collection on POL products in the first half of the financial year would be released in the current month.
