Govt Sets Ambitious Rs 1,281 Billion Target for Petroleum Levy in FY 2024-25

Staff Report
The federal government has set an ambitious target to collect Rs 1,281 billion through the Petroleum Levy (PL) on petroleum products for the fiscal year 2024-25.

This represents a Rs 321 billion increase from the revised estimate of Rs 960 billion for the current fiscal year 2023-24.
Originally, the budget for the current year set the PL target at Rs 869 billion. Thus, the new target is a 47.4% increase over the previous year’s goal.Petrol Price Down by Rs 15.39 per liter

Additionally, the government aims to maintain the Gas Infrastructure Development Cess (GIDC) collection at Rs 2.5 billion for the fiscal year 2024-25, the same as the revised target for 2023-24.

The original budget for GIDC in the current fiscal year was Rs 40 billion.
For the Natural Gas Development Surcharge (GDS), which is the difference between the prescribed and sale price of gas that goes to the provinces, the government projects Rs 25.618 billion next year.
This is down from the original budget of Rs 40 billion and the revised estimate of Rs 27.169 billion for the current year.CCP Approves Merger of IBP & NIBAF

The Auditor General of Pakistan (AGP) is auditing the GDS claims of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) to confirm the actual collections.

The government also plans to collect Rs 3.537 billion through the PL on Liquefied Petroleum Gas (LPG) in fiscal year 2024-25, slightly up from the revised target of Rs 3.516 billion for the current year.
The original budget for PL on LPG for this year was significantly higher at Rs 12 billion.

Additionally, the budget for fiscal year 2024-25 includes Rs 25 billion to be retained as a discount on local crude oil prices, the same as the revised estimate for the current year but up from the original budget of Rs 20 billion.

The budget for next year proposes a decrease in the royalty on crude oil and an increase in the royalty on natural gas for provinces.
The royalty on crude oil is set at Rs 58.654 billion for next year, up from the revised estimate of Rs 57.017 billion for the current year.
The royalty on natural gas is budgeted at Rs 103.751 billion for the next year, compared to the revised target of Rs 93.567 billion and the original budget of Rs 75 billion for 2023-24.

The budget also includes Rs 28 billion for a windfall levy on crude oil, up from the Rs 20 billion budgeted for the current year. The windfall levy on gas is budgeted at Rs 400 million, an increase from Rs 220 million this year. Miscellaneous receipts from oil and gas companies are expected to generate Rs 1,528.46 billion next year, compared to a revised target of Rs 1,197.8 billion and the original estimate of Rs 1,141 billion for the current year.