Islamabad June 11 2022: Pakistanis are likely to be taken for a costly ride as the budget 2022-23 proposes increasing the target of petroleum levy to Rs750 billion.
Petroleum levy alone would require Oil and Gas Regulatory Authority to notify increase of Rs30-Rs35 per liter in prices of Petrol and Diesel.
Even after increase of Rs 60 per liter in petroleum prices, government is bearing subsidy of Rs Rs 9.02 per liter on Petrol, Rs 23.05 per liter on High Speed Diesel and Rs 8.08 per liter on Light Diesel Oil.
As per Budget document, government will remove cash subsidy, put Petroleum Levy and charge 17% sales tax on Petroleum Products.
Minister for Finance and Revenue Miftah Ismail on Friday said that, “government would abolish subsidy on petroleum products for stabilizing economy.”
He added, “We could not bear burden of heavy subsidy being given to people on petroleum products.”
The prices are projected to hover around Rs300 per liter in the next four to six months.
During 11MFY22, the MS sales has been witnessed at 8.3 million tons compared to 7.4 million tons during same period last year. Sales of MS has increased by 11 percent during 11MFY22. The rise in sales is witnessed due to higher demand on the back of increased sales of auto mobiles in the country.
Same trend has been witnessed in the sale of High Speed Diesel (HSD), which were increased by 18 percent during 11MFY22 as the HSD sales has been witnessed at 8.2 million tons compared to 6.9 million tons during same period last year. Sales of HSD has increased by 18 percent during 11MFY22. The rise in sales is witnessed due to higher demand on the back of increased sales of auto mobiles and higher power generation on HSD.
Sales of Furnace oil (FO) also increased by 36 percent during 11MFY22, the FO sales has been witnessed at 3.6 million tons compared to 2.6 million tons during same period last year. Sales of FO has increased by 36 percent during 11MFY22. The rise in sales is witnessed due to higher power generation on FO.
