ISLAMABAD (April 04 2003) : The federal government is collecting Rs 16.20 per litre in lieu of different levies on premium motor gasoline, it is reliably learnt here on Thursday.
“The government is collecting about Rs 16.20 per litre on the motor gasoline raising the current price to Rs 33.27 per litre after the last adjustment on March 31 by the oil marketing companies (OMCs),” sources told Business Recorder.
The sources said that Rs 16.20 did not include inland freight cost of Rs 1.15, dealer commission of Rs 1.30 and distributors margin of OMCs Rs 1.14 per litre.
Official documents revealed that the Oil Companies Advisory Committee (OCAC) is currently fixing the prices of four petroleum products on the basis of petroleum development levy, rates of inland freight, rates of dealer commission and rates of distributors margin of the OMCs.
The 15 percent sales tax, central excise and Customs duties are besides these expenditures.
The petroleum development levy charged by the government on one litre motor gasoline is Rs 9.50, sales tax Rs 5 per litre central excise duty 88 paisa and nominal Customs duty.
Similarly, on HOBC with the current price of Rs 37.32 per litre the government is charging petroleum development levy of Rs 12.30 per litre, sales tax Rs 5.48, central excise duty 88 paisa and nominal Customs duty.
The rates of inland freight margin on HBOC is Rs 2.03, rates of dealer commission Rs 1.45 and rates of distributors margin of the OMC's is Rs 1.27.
On light speed diesel current rates of Rs 18.64 per litre the government is charging petroleum development levy at the rate of Rs 1.30 per litre, sales tax Rs 3 per litre, while rates of inland freight margin is Rs 1.31, no rates of dealer commission and rates of distributors margin of the OMC's is 61 paisa.
On kerosene oil with current price of Rs 21.06 per litre, the government is charging development levy of Rs 3.35 per litre and about Rs 3 per litre sales tax, while there is no excise duty on the kerosene oil.
The rate of inland freight margin is Rs 1.21, rate of dealer commission zero and rate of distributors margin of the OMC's is Rs 0.72.
The sources said that they did not know why the government was increasing the prices of petroleum products as the current oil price was about $ 30 a barrel, which was less then $35 per barrel last September.
There was about 208.198 litres in drum and one drum was equivalent to 1.3095 barrels.
The petroleum surcharge (petroleum development levy) would contribute for Rs 48 billion to the national exchequer in the fiscal 2002-03.
When contacted for comments Oil Director Sabir Hussain refused to comment on the issue saying that they were not in a position to comment on the current tax structure and petroleum pricing issue.