Petroleum levy collection target surpassed

The government has collected more than Rs900 billion in petroleum development levy on the sale of petroleum products, surpassing the full-year collection target of Rs869 billion in 11 months of the current fiscal year. As demand for petroleum products spiked to a nine-month high at 1.4 million tons in May 2024 in the wake of reduction in prices, total consumption reached 13.8 million tons in July-May 2023-24, according to Topline Research. Topline Research analyst Myesha Sohail reported that tax collection through PDL touched Rs907 billion in 11 months of FY24, adding that “the government could realise Rs990 billion to Rs1 trillion” on the back of a monthly average of Rs80-85 billion. The government collects PDL of Rs60 per litre on the sale of both petrol and diesel. She said oil marketing companies (OMCs) recorded sales of 1.39 million tons in May 2024, the highest in nine months, up 7% year-on-year and 26% month-on-month, led by an 18% year-on-year surge in diesel sales.