ISLAMABAD: The International Monetary Fund (IMF) expressed worry at the decrease in POL prices over the previous two weeks, prompting the Finance Ministry to increase the petroleum tax on gasoline on Saturday.
When Finance Minister Ishaq Dar declared that the price of gasoline and other petroleum goods will be reduced, eyebrows were raised. The action had been described as “reckless” by Dar’s predecessor Miftah Ismail, prompting a vehement rebuke from him.
On Saturday, the government maintained the rates for gasoline and diesel at Rs 224.80 per litre and Rs 235.30 per litre, respectively, while raising the tax on gasoline by Rs 14.84 to Rs 47.26 per litre and lowering it for diesel with immediate effect beginning on October 16, 2022.Starting on October 1, 2022, the PL for gasoline was Rs 32.42.
When the finance ministry decreased the petroleum charge on gasoline by Rs 5 to Rs 32.42 per litre from Rs 37.42 on October 1, 2022, the IMF expressed concern, which led to the increase in the petroleum tax on Mogas.
The government must increase the petroleum levy on gasoline and diesel to Rs50 per litre in order to generate Rs 850 billion in revenue during the current fiscal year.On the other hand, starting on October 16, 2022, the tax on fuel would be decreased by Rs 5.44 to Rs 7.14 per litre. From October 1, 2022, the petroleum tax on fuel was Rs 12.58 per litre.
The current fuel duty rates for HOBC are Rs 30 per litre, Rs 8.90 for kerosene oil, R s1.59 for light diesel oil, and Rs 23.21 for E-10 gasoline.The inland freight equalisation margin (IFEM) for gasoline dropped from Rs 2.53 to Rs2.50 per litre, a reduction of Re 0.52.
The district margin, which includes the additional margin on gasoline, is R s3.68 per litre, compared to the dealers’ profit of R s7 per litre.
