Petrol Price May Go Up At End Of This Week: Sources

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Petrol price may go up at end of this week: Sources

The sources say that the government authorities are deliberating possibility of a petroleum levy increase of up to Rs20 per litre.

LAHORE: (UrduPoint/Pakistan Point News-June 10th, 2024) The petrol price may go up at the end of this ongoing week as the government authorities were deliberating possibility of a petroleum levy increase of up to Rs20 per litre, the sources close to the development said on Monday.

The sources said that there is a concern that reduction in petroleum product prices for the next fiscal year might not be passed on to the public.

They said that in the Federal budget for 2024-25, there is consideration of imposing sales tax on petroleum products and increasing the petroleum levy.

The sources also said that a proposal has been made to impose sales tax on petroleum products in the next fiscal year.

Similarly, the levy could be increased from 60 rupees to 80 rupees per liter.

It has been suggested that sales tax on petroleum products be gradually increased; currently, the sales tax rate on these products is zero.

They said that a development levy of 60 rupees per liter is currently being collected on petrol and diesel.

“If sales tax and the levy are increased, the relief will not be passed on to the public,” said the sources, adding that the government is already obtaining Rs60 per liter in petroleum levy on both petrol and diesel, which is the maximum allowable limit under the law.

During the first nine months ending March 31, the government collected 720 billion rupees under this head. The government has set a target of collecting 869 billion rupees in petroleum levy on petroleum products for the current fiscal year, as per commitments made with the International Monetary Fund.

Abdullah Hussain

Abdullah Hussain is a staff member who writes on politics, human rights, social issues and climate change.