LAHORE, Sept 19: The government taxes constitute more than 50 per cent of the petrol and over 33 per cent of the High Speed Diesel retail prices.

The fact came to light from the study of the formula used for fixing the retail prices of the POL products submitted by the federal government in the court of Mr Justice Tassadaq Hussain Jilani of the Lahore High Court in connection with a criminal miscellaneous application moved by Counsel M.D.Tahir in connection with his pending writ petition filed in 1988.

According to the formula submitted by the director general, ministry of petroleum and natural resources, taxes totalling Rs17.28 are levied on every litre of petrol sold by the refinery only for Rs13.01 per litre. Petrol is being sold for Rs34.41 per litre at the pumps these days.

Petroleum Development Levy charged at the rate of Rs11.99 per litre is the major tax charged on petrol. General Sales Tax charged at the rate of Rs4.41 is the next major levy on petrol. Customs/excise duty is recovered at the rate of Rs0.88 per litre in addition.

Other charges include dealers commission charged at the rate of Rs1.35 per litre, oil companies distribution margin fixed at Rs1.18 per litre and inland freight margin of Rs1.02 per litre.

Similarly taxes totalling Rs6.26 are levied on every litre of High Speed Diesel being sold by the refineries at an average Rs10.34 per litre. Petrol pumps are selling the HSD at the rate of Rs19.56 these days.

The Petroleum Development Levy charged at the rate of Rs2.76 per litre is the major tax on the HSD. General Sales Tax charged at the rate of Rs2.49 per litre is the next big levy on the HSD followed by the customs/exise duty of Rs1.03 per litre.

Other charges factored in HSD retail price include dealers commission allowed at the rate of Rs0.76 per litre. Oil companies are allowed a margin of Rs0.66 per litre. Inland freight charges of Rs1.04 per litre are also added to the retail price

The counsel has questioned the logic of heavy taxation on POL products resulting in abnormal increase in consumer prices. Exorbitant prices of POL products also result in increase in transportation charges which, in turn, push the prices of consumer goods upwards.

Increase in public transport fares affects the common run of people having no alternative to reach their places of work, business and education. He has prayed to the court to direct the government to reduce the POL prices for providing relief to the general public.

The judge adjourned the hearing of the petition till Sept 27 when the petitioner and the state counsel would argue the case.