The government is arranging to accumulate Rs.55 billion as taxes with the sale of petroleum products POL this month.
A local media reported that the Petroleum Division saying that the real reason behind the government increasing the petrol prices is the extra taxes on POL.
They dismiss the governments declare that the increase in prices of petrol and high-speed diesel (HSD) is because of the rising oil prices in the international market
The sources say that petrol and diesel prices have risen desperately because of the pressure of additional taxes.
The price of diesel can be decreased by Rs.4 per liter, based on the prices in the global oil market.
In fact, the government is collecting around Rs.40 per liter on the sale of POL products under the category of general sales tax, regulatory duty, petroleum, and margins.
Such a high rate of petroleum levy is never done in the country‘s history, said the sources.
They added that the federal Board of revenue (FBR) will be responsible for an Rs.350 billion shortfall in revenue while the public is going to bear the burden.
A notification sent by the Ministry of Energy (petroleum division), dated April 30, 2019,
And has disclosed the rate of petroleum levy for sales of POL products for direct sales and through retail outlets.
As per the notification, the levy on petrol for sales through retail outlets is Rs.14.15 and for Rs.17.62 per liter direct sales.
The levy on diesel (HSD) for direct sales and sales via retail outlets is at Rs.5.98 per liter.
Furthermore, the levy on light diesel oil (LDO) through retail outlets and direct sales is Rs.2.58 per liter,
While the levy on the high-octane blended component (HOBC) is at Rs.17.62 per liter and Rs.14.15 per liter for direct sales and retail outlet sales respectively.