ISLAMABAD: The federal government has restructured petroleum levies by increasing the petroleum development levy (PDL) on petrol and reducing it on high-speed diesel (HSD) by the same amount, while cutting the retail prices of both fuels by Rs1.97 per litre.
The revised pricing mechanism is effective from July 4.
According to separate notifications issued by the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA), the PDL on petrol has been increased by Rs6.22 per litre to Rs70.36 from Rs64.14.
In contrast, the levy on HSD has been reduced by Rs6.22 per litre to Rs70.82 from Rs77.04, bringing levies on the country’s two most-consumed petroleum products to almost the same level.
Despite the levy adjustment, the government reduced the retail prices of both petrol and HSD by Rs1.97 per litre. The ex-depot price of petrol has been reduced to Rs297.53 per litre from Rs299.50, while HSD will now sell at Rs309.50 per litre, down from Rs311.47.
The official price structure shows that the Climate Support Levy (CSL) has been retained at Rs5 per litre on both petrol and HSD, while the general sales tax (GST) remains zero.
This leaves the PDL as the main federal levy included in fuel prices.
According to the notified price structure, the ex-refinery price has been fixed at Rs198.80 per litre for petrol and Rs214.74 per litre for HSD.
The Inland Freight Equalisation Margin (IFEM) stands at Rs6.86 per litre for petrol and Rs2.43 per litre for HSD.
The oil marketing companies (OMCs) margin remains unchanged at Rs7.87 per litre and dealer commission at Rs8.64 per litre on both products.
After freight and distribution margins, the price before petroleum levies and other charges comes to Rs222.17 per litre for petrol and Rs233.68 per litre for HSD, according to the official pricing formula.
Separately, OGRA increased the price of superior kerosene oil (SKO) by Rs4.09 per litre, raising its retail price to Rs231.14 from Rs227.05, effective July 4.
The revised kerosene price structure shows an ex-refinery price of Rs200.91 per litre and an IFEM of Rs8.29 per litre.
The OMC margin has been maintained at Rs1.58 per litre, taking the price before levy to Rs210.78 per litre.
The PDL on kerosene remains unchanged at Rs20.36 per litre.
Unlike petrol and diesel, neither the Climate Support Levy nor GST has been applied to kerosene.
