Business
Petrol prices may go up due to increase in petroleum levy
The sources say that the government authorities are also considering a petroleum levy hike up to Rs20 per litre
Islamabad: The petrol prices may go up by the end of this week as government authorities are considering a petroleum levy hike of up to Rs20 per litre, the sources familiar with the development said on Monday.
The sources said that expected reduction in petroleum product prices for the upcoming fiscal year might not benefit the public.
In the federal budget for 2024-25, there is a proposal to impose sales tax on petroleum products and raise the petroleum levy.
The proposal suggests introducing sales tax on petroleum products in the next fiscal year and increasing the levy from 60 rupees to 80 rupees per liter. Currently, the sales tax rate on these products is zero, but there are plans to gradually increase it.
A development levy of 60 rupees per liter is currently being collected on both petrol and diesel. If the sales tax and levy are raised, this relief will not be passed on to the public, sources explained. The government is already collecting Rs60 per liter in petroleum levy, which is the maximum limit allowed by law.
During the first nine months ending on March 31, the government collected 720 billion rupees through this levy. To meet commitments made with the International Monetary Fund, the government has set a target of collecting 869 billion rupees in petroleum levy on petroleum products for the current fiscal year.