Government suspends Price Stabilisation and Recovery levy on petroleum products
The PSRL aims to stabilise petroleum product prices for consumers over specific periods
The government has instructed the National Petroleum Authority (NPA) to halt the implementation of the Price Stabilisation and Recovery Levy (PSRL) on petroleum products' price build-up.
Read full articleAccording to a Joy Business report, this directive, effective from April 1 to June 30, 2024, freezes the levy charged on each liter of petroleum products and kilogram of LPG. The decision, communicated through a letter from the NPA to all stakeholders in the oil marketing and distribution sector, stems from directives issued by the Finance Ministry in collaboration with the Energy Ministry.
The move is anticipated to potentially reduce petrol prices by 16 pesewas per liter, diesel by 14 pesewas per liter, and LPG by 14 pesewas per kilogram. It aims to counteract the projected rise in petroleum product prices, thereby mitigating the impact on consumers at fuel stations due to global market price escalations.
Under the Energy Sector Levies Act 2015 (Act 899), the NPA is empowered to implement the PSRL to stabilise petroleum product prices for consumers over specific periods. Presently, the levy stands at 16 pesewas per liter for petrol, 14 pesewas per liter for diesel, and 14 pesewas per kilogram for LPG.
This intervention underscores the government's commitment to cushioning consumers against fluctuations in petroleum product prices. Historically, such measures are employed to suspend the levy when prices rise to a certain threshold, only to reinstate it when prices fall below a certain level.
