Additional taxes on petroleum products behind recent hike: sources

  • ‘Around Rs40 per litre are being collected on the sale of POL products under the head of various taxes’

ISLAMABAD: The money-starved Pakistan Tehreek-e-Insaf government is expected to collect approximately Rs55 billion from the inflation-hit masses on account of the sale of petroleum products (POL) during the running month of May 2019.

Sources in the Petroleum Division informed Pakistan Today about the actual reason behind the government dropping the petrol bomb on the already burdened masses. They said that the government, while increasing per litre prices of petrol and high-speed diesel (HSD), had made an excuse that “oil prices were hiked in the international market”.

Disagreeing with the government’s claim, sources said that petrol and diesel prices witnessed a massive hike only due to the imposition of additional taxes, as the price of diesel could be reduced by Rs4 per litre in line with the price of the global oil market. “Approximately Rs40 per litre is being collected on the sale of POL products under the head of general sales tax, petroleum levy, regulatory duty and margins,” said claimed.

They said that the Finance Division has imposed a high rate of petroleum levy on the sale of POL products, adding that there was no example in the country’s history with regard to such a high rate of petroleum levy.

According to sources, the Federal Board of Revenue (FBR) may be responsible for approximately Rs350 billion revenue shortfall. However, the common public would have to bear the brunt of this shortfall.

Available copy of notification issued by Ministry of Energy (petroleum division), dated 30th April 2019, disclosed the rate of petroleum levy for sales of POL products through retail outlets and for direct sales.

According to the notification, petroleum levy on petrol for direct sale is at Rs17.62 per litre and at Rs14.15 for sales through retail outlets. Similarly, petroleum levy on diesel (HSD) for direct sales is at Rs5.98 per litre and the same rate of levy is for sales through retail outlets. Moreover, petroleum levy on light diesel oil (LDO) for direct sales and through retail outlets is at the same level of Rs2.58 per litre. Furthermore, petroleum levy on high octane blended component (HOBC) is at Rs17.62 per litre for direct sales and Rs14.15 per litre for sales through retail outlets.


  1. None of these so called economist neither in the government or in private sector speak about application of Agricultural TAX. Do whatever they want to do but until and unless they apply Agricultural TAX our country which is actually a Agricultural country cannot survive.

  2. It does ot matter what you me or any other say these people who are starved are all corrupt, no one does any thing for the poor people when imran khan was in opposition what did he say now he is doing exactley the same in fact more putting up fuel prices just to collect tax nothing else there is still load shedding no electric what has he done he runs to china every day why does he not ask them to sort out the electeic problem they all are bull shitters…..

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