Petroleum levy likely to increase in Budget 2024

ISLAMABAD: Consumers are likely to be taken for a costly ride in 2024-25 as the federal government is considering a significant increase in the petroleum levy in the upcoming budget, ARY News reported on Monday, citing sources.  

Sources told ARY News that the government is likely to increase the petroleum levy by Rs20 per litre, taking it from Rs60 to Rs80 per litre, in budget 2024 – a move aimed at boosting federal revenue.

Furthermore, the government is also mulling imposing sales tax on petroleum products, currently exempt from the tax.

The petroleum levy is a major source of income for the government, with Rs720 billion collected in the first nine months of the current fiscal year. The government plans to collect Rs869 billion from petroleum levy in the current fiscal year.

Earlier on May 31, the government reduced the prices of petrol and high speed diesel by Rs4.74 and Rs3.86 per litre, respectively.

Ogra has also cut the price of 11.8kg domestic LPG cylinder by 1.6pc, or Rs45.62 for June. The rates of kerosene and light diesel oil (LDO) were also slashed by Rs1.87 and Rs3.88 per litre, respectively.

In a notification, Ogra set the producer price of LPG at Rs193.30 per kg, down from Rs197.16 per kg.

After adding GST and distributors’ margin, consumers will have to pay Rs2,768.23 for an 11.8kg cylinder or Rs234.57 per kg.