Petroleum levy to stay unchanged at Rs10 per litre
ISLAMABAD: On Prime Minister Shehbaz Sharif’s explicit instructions to reduce the price of petroleum and products in line with the reduction in their international price the Finance Division on Wednesday moved a summary seeking up to 15 percent reduction in petroleum prices with effect from July 16 – one day prior to the 20 by-elections to be held in Punjab that would determine the fate of the Punjab government.
As usual, the final decision in this regard will be taken by the Prime Minister.
“Any reduction in the price of petroleum and products will be in line with the IMF agreement with the Petroleum Levy (PL) remaining unchanged at 10 rupees per litre while the reduction in the international price will be passed onto the consumers”, an official of Petroleum Division told Business Recorder on condition of anonymity.
At present the PL on petrol stands at Rs10 per litre, on HSD, SKO and LDO at Rs 5 per litre each while sales tax is zero.
National Assembly has approved a rise in the maximum limit of PL from Rs 30 per litre to Rs 50 per litre to achieve the budgetary target of Rs 750 billion in Finance Bill 2022-23.
Sources in Petroleum Division told this correspondent that it the government is unlikely to fetch Rs 750 billion from PL in the current financial year at the current PL rate as that would enable a maximum collection of Rs14 billion per month. Additionally, a revenue shortfall of Rs 45 billion per month would be experienced if the 17 percent general sales tax (GST) is not slapped on these products. Source: dawn.com
Tuesday, May 5, 2026
