With immediate effect beginning on October 16, 2022, the government has increased the Petroleum Levy (PL) on gasoline by Rs14.84 to Rs47.26 per litre while decreasing it on diesel, maintaining the rates at Rs224.80 per litre and Rs235.30 per litre, respectively. Starting on October 1, 2022, the PL for gasoline was Rs32.42.
When the finance ministry cut the petroleum levy on gasoline by Rs. 5 to Rs. 32.42 per litre from Rs. 37.42 on October 1, 2022, the IMF expressed concern, prompting the government to increase the levy on mogas. Senator Ishaq Dar, the finance minister, is now in Washington for meetings with IMF representatives.
On the other hand, starting on October 16, 2022, the tax on diesel would be decreased by Rs5.44 to Rs7.14 per litre. From October 1, 2022, the Petroleum Levy on diesel was Rs12.58 per litre. Additionally, the government maintained the cost of diesel at Rs235.30 per litre.
The current petroleum levy rates are Rs30 per litre for HOBC, Rs8.90 for kerosene oil, Rs1.59 for light diesel oil, and Rs23.21 for E-10 gasoline.
The inland freight equalisation margin (IFEM) for gasoline dropped from Rs2.53 to Rs2.50 per litre, a reduction of Re0.52. The district margin, which includes the additional margin on gasoline, is Rs3.68 per litre, compared to the dealers’ profit of Rs7 per litre.
IFEM for diesel has gone up Re0.07 per litre to Rs1.83 from Rs1.76 per litre. Additionally, the district margin, which includes extra margin, is Rs3.68 per litre and the dealer margin for diesel is Rs7 per litre.
