Notification of sales tax on petroleum products issued

Islamabad: The notification of sales tax on petroleum products has been issued on Tuesday. 

According to the notification, the percentage of sales tax to be charged on petroleum products included 2.5 per cent on petrol, 5.44 per cent on high-speed diesel, 8.30 per cent on Kerosene oil, and 2.7 per cent on light diesel.

According to the notification, prices of petroleum products will remain stable till January 31.

Meanwhile, the proportions of taxes, duties and levies have been hiked in the overall price of petroleum products. Rs31.57 worth taxes, duties, margin and levies have been imposed on per litre petrol, while the government is receiving taxes, duties, margin and levy amounting to Rs31.50 on per litre diesel.

The sources also informed that the ex-refinery price of petrol is Rs116.26 per litre. And for people, the petrol price is Rs147.83 per litre. It also revealed that the ex-refinery price of high speed diesel is Rs113.12 per litre, while people are buying it for Rs144.62 per litre. 

The sources further stated that the government is receiving on per litre petrol Rs4.90 under the head of dealers’ margin from the consumers while the distributor margin on per litre petrol is Rs3.68 and government is charging Inland Freight Equalization Margin (IFEM) amounting to Rs4.21 per litre petrol. 

As per sources, the government has imposed levy amounting to Rs17.62 and sales tax amounting to Rs1.16 on per litre petrol. It also revealed that the dealers’ margin on per litre high speed diesel is Rs4.13 while distributer margin is Rs3.68 and IFEM is Rs2.12. 

The local media sources further informed that a levy totaling Rs17.13 and sales tax amounting to Rs4.44 on per litre high speed diesel have been imposed.

On Jan 15, the federal government increased the per litre price of petrol by Rs3.01 and High Speed Diesel (HSD) by Rs3.

Accoridng to a notification issued by the Finance Division, besides petrol an increase in other petroleum products will also be enforced starting January 16.

Petrol, with the Rs3.01 increase, will now cost Rs147.83 per litre, whereas HSD, with an increase of Rs3, will now cost Rs144.62 per litre.

In addition, kerosene will cost Rs3 more and will thus be priced at Rs116.48 per litre, while light diesel oil will become Rs3.33 dearer to cost Rs114.54 per litre.

The Oil and Gas Regulatory Authority (OGRA) had recommended a Rs5.52 per litre increase in the price of petrol.