ISLAMABAD, Jan 13: The federal government is earning Rs17.25 to Rs20.71 on every litre of petrol sold, in the form of various taxes and charges against original (ex-refinery) price of Rs10.81 to Rs11.29, petroleum ministry officials told Dawn.

This calculation has been made by the petroleum ministry after last petroleum price review announced by the Oil Companies’ Advisory Committee (OCAC) effective Jan 1, 2002.

The government’s profit in motor spirit and HOBC is around 160 per cent and 183 per cent respectively. The government, however, claimed that oil prices in Pakistan were lowest in the region.

The ex-refinery price of MS 87 RON is Rs10.81 per litre against its fixed sale price of Rs29.59 per litre. The difference of Rs18.78 per litre is being squeezed by government (Rs17.25), oil marketing companies (Rs0.64) and dealers’ commission (Rs0.89).

The government taxation portion per litre comprises petroleum development levy (PDL) Rs11.65, general sales tax (GST) Rs3.86, customs/excise 88 paisa and inland freight margin 86 paisa.

The government profit or taxation portion, in this way, comes to 160 per cent of the original cost of the product when it comes out of refinery.

Similarly, the sale rice of HOBC (High Octane Blending Content) is Rs33.79 per litre against ex-refinery price of Rs11.29. Together with oil marketing margin of 78 paisa and dealer’s commission of Re1.01, the government share comes to Rs20.71 per litre or 183 per cent.

Taxation content in per litre HOBC price includes Rs13.35 as PDL, Rs4.41 GST, Rs2.07 inland freight margin and 88 paisa excise duty.

Kerosene oil is sold at Rs11.98 per litre against its ex- refinery price of Rs8.99 per litre. The government earns a profit of Rs4.90 per litre kerosene or 55 per cent which is used primarily by people below poverty line or those living in the far-flung areas.

Kerosene price contains Rs2.40 per litre PDL, 19 paisa oil companies margin, Rs1.82 per litre GST and 58 paisa freight margin.

The sale price of high speed diesel (HSD) is Rs14.47 against its ex-refinery price of Rs7.97 per litre. The government profit/taxation is around Rs5.79 per litre or 72.6 per cent including Rs2.81 PDL, Rs1.89 GST, paisa 90 freight and paisa 25 excise duty. OMCs margin and dealers’ commission in this product is fixed at 28 paisa and 43 paisa per litre respectively.

Official sources said that it was found during the calculation that for the first time since deregulation of petroleum prices last year, the oil companies did not pass on the exact diesel price to the consumers and earned Rs1.82 per litre for 15 days. Oil companies’ fixed margin is 28 paisa and 17 paisa per litre on high speed and light diesel oil respectively.

This, however, prompted the federal government to take advantage of the windfall by increasing petroleum development levy by 75 paisa per litre on diesel and 25 paisa per unit increase on all other petroleum products including petrol.