People ‘bear burden’ of levies, dealer margin on POL prices

By: News Desk      Published: 11:24 PM, 2 Jan, 2021
People ‘bear burden’ of levies, dealer margin on POL prices

People have been bearing the burden of levies, duties and dealer margin on petroleum products.

According to sources, authorities have made the public pay Rs48.29 per litre paisa in the name of levies and Rs 3.70 per litre dealer margin though the government claims to have taken steps to provide people ‘maximum’ relief.

On December 31, Prime Minister Imran Khan approved Rs2.31 per litre hike in petroleum tariff what the PM Office stated considering relief for the people, Prime Minister Imran Khan approved the ‘minimum possible increase’ in prices of petroleum products against Ogra's recommendations.

The regulatory body had sought a rise of Rs10.68 per litre in the price of petrol and Rs8.37 in diesel's price. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers, while the HSD is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers, etc.

Also in December, the government raised petroleum products rates up to eight per cent. Reportedly, the government has been increasing petroleum levy rates instead of GST as levy remains in the federal kitty while GST goes to the divisible pool taxes and thus about 57pc share is grabbed by the provinces.

Under the revised mechanism, the prices are revised on a fortnightly basis to pass on international prices published in Platt’s Oilgram instead of the previous mechanism of monthly calculations on the basis of import cost of the Pakistan State Oil at present.