May 19, 2021 (MLN): In order to provide substantial relief to the common man, government is on its toes to maintain the petroleum prices. It is evident from the fact that petroleum levy on diesel has been slashed by 64% since the beginning of CY21.
At present, the petroleum levy on diesel stood at Rs8.86/liter as compared to Rs24.38/liter in January 2021. The government had already collected almost 30% higher than targeted revenue on petroleum products through petroleum levy in the first six months of the current fiscal year. Therefore, it was comfortable with the adjustments in petroleum levy. According to the finance ministry, the collection on account of petroleum levy amounted to Rs275bn in the first six months against the annual target of Rs450bn.
On the pricing front, Diesel price has been shot up by 25% since January 1, 2021 as the price of ex-refinery diesel increased from Rs63/liter in January 2021 to Rs79/liter as of May 18, 2021.
Petrol and HSD are two major products that generate most of the revenue for the government because of their substantial and yet growing consumption in the country. The Petroleum levy on Petrol which currently stands at Rs4.47/lite, has been cut by 79% since the beginning of CY21, as it was Rs22.85/liter till January 1, 2021.
On the contrary, the price of Petrol has witnessed 35% jump as the ex-refinery price of petrol on Jan 1, 2021 was Rs57.71/liter which now stands at around Rs78/ liter.
