ECC Approves Increase in Petroleum Levy on Hi-Octane

The Economic Coordination Committee (ECC) of the Cabinet on Friday allowed increasing petroleum levy to Rs. 50 per liter on Hi-octane vehicles. The meeting, presided over by Finance Minister Ishaq Dar, considered a summary of the Federal Board of Revenue regarding an increase in the rate of sales tax on high octane blending components.

Sales tax on petroleum products reduced to zero from 1st February 2022, putting pressure on FBR’s efforts to achieve revenue targets. Increase in petroleum levy from Rs. 30 per liter up to Rs. 50 per liter on RON 95 and above with effect from 16th November 2022.

Premium on HSD subject to a maximum capping at $15/BBL for importing OMCs other than PSO for the months of November and December 2022. The ECC also approved a technical supplementary grant (TSG) of Rs. 5 billion for the conduct of the 7th population census.