Govt’s petroleum levy collection exceeds target

KARACHI: The government has surpassed its petroleum development levy (PDL) collection target, accumulating Rs 907 billion against a target of Rs 869 billion within 11 months of the fiscal year, Express Tribune reported.

This achievement comes amid a rise in demand for petroleum products, reaching a nine-month high of 1.4 million tons in May 2024 due to a reduction in prices. Total consumption from July to May 2023-24 amounted to 13.8 million tons, as reported by Topline Research.

NEPRA to hold hearing on K-Electric’s FCA request next week

According to Topline Research analyst Myesha Sohail, the government collected Rs 907 billion through PDL over 11 months in FY24. Sohail projected that the government could potentially collect between Rs 990 billion and Rs 1 trillion, given the monthly average collections of Rs 80-85 billion. The PDL is set at Rs 60 per litre for both petrol and diesel.

Oil marketing companies (OMCs) reported sales of 1.39 million tons in May 2024, marking a 7 per cent year-on-year increase and a 26 per cent rise month-on-month. This growth was driven by an 18 per cent year-on-year increase in diesel sales. Petroleum sales for the first 11 months of the fiscal year totalled 13.8 million tons, reflecting a 9 per cent decrease compared to the previous year.

Diesel sales saw significant growth in May 2024, with a rise of 18 per cent to 643,000 tons compared to May 2023. This increase was attributed to the harvesting season and a price drop of Rs 16.3 per litre. Additionally, a crackdown on the smuggling of petroleum products boosted high-speed diesel (HSD) sales.

Stock market continues downturn amid budget concerns

Motor spirit (MS/petrol) sales increased by 1 per cent year-on-year and 14 per cent month-on-month to 607,000 tons, bringing the 11-month total to 6.4 million tons, a 5 per cent decrease year-on-year. Petrol prices decreased by Rs 20.84 per litre in May 2024. Furnace oil sales dropped 29 per cent year-on-year to 69,000 tons, due to reduced power generation from furnace oil-based plants.