No change in petrol prices as tax rates raised

Published December 1, 2021
Petroleum levy on petrol was fixed at Rs13.62 per liter for next fortnight instead of Rs9.62 at present. — Reuters/File
Petroleum levy on petrol was fixed at Rs13.62 per liter for next fortnight instead of Rs9.62 at present. — Reuters/File

ISLAMABAD: Despite decline in international prices, the government on Tuesday decided to keep the prices of all major petroleum products unchanged for the next 15 days by increasing tax rates — both petroleum levy and general sales tax.

The decision to increase the rates of petroleum levy and GST was taken in line with commitments given to the International Monetary Fund, otherwise the prices should have gone down by Rs8-9 per litre in line with decline in international prices.

A part of this reduction was consumed by exchange rate loss while the government absorbed about Rs6 per litre reduction through combined increase in petroleum levy and GST rates. A straight increase of Rs4 per litre on petrol and high speed diesel (HSD) was affected through increase in petroleum levy of about Rs2 per liter and through GST.

LPG price fixed at Rs2,390 per 11.8kg cylinder for December

As such, petroleum levy on petrol was fixed at Rs13.62 per liter for next fortnight instead of Rs9.62 at present. GST on petrol was also increased from 1.43pc to 1.63pc of the end-product price.

Likewise, petroleum levy on HSD was fixed at Rs13.14 per litre instead of Rs9.14 per litre. GST on HSD was also increased to 7.37pc instead of 6.75pc of end-product price.

GST on kerosene was also increased to 8.20 per cent from 6.7pc at present. GST on light diesel oil was also jacked up to 0.46pc instead of 0.20pc at present. Petroleum levy on kerosene and LDO was also increased by Rs4 per litre to Rs5.91 and Rs3.66 per liter, respectively.

Therefore, under the notification, the ex-depot price of petrol was kept unchanged at Rs145.82 per litre. The ex-depot price of HSD was also maintained at the existing level Rs142.62 per liter. The ex-depot prices of kerosene and light diesel oil were also kept unchanged at Rs116.53 per litre and Rs114.07 per litre, respectively.

Meanwhile, Ogra notified the sale price of liquefied petroleum gas at Rs2,390 per 11.8kg cylinder for December, showing a decline of about 6.6pc when compared with last month but about 54pc higher than comparable month of December last year when the prices stood at Rs1,553 per cylinder.

Published in Dawn, December 1st, 2021

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