The Economic Coordination Committee approved on Friday a Rs9 increase in the price of petrol per litre.
It will be sold at Rs108 per litre after approval of the federal government on Tuesday.
The ECC has approved an increase of Rs4.89 in the price of diesel. The Oil and Gas Regulatory Authority had recommended a Rs14 increase in the price of petrol.
The government submitted in Senate on Friday a detailed briefing about the tax collection on petroleum products in Pakistan.
In the Senate session, it was discussed that the government is already receiving a tax of Rs26.50 per litre on petrol. However, the government also receives a tax of Rs9.84 per litre for petroleum distribution and transport cost.
It was stated in the documents that around Rs39.96 in taxes are received from high-speed diesel per litre. Around Rs7.21 per litre tax is imposed and collected over the distribution and transport cost of high-speed diesel.
On kerosene, the government receives a tax of Rs15.86 per litre while Rs15.86 is being collected by the distribution and transport cast.
According to the documents, Rs11.72 in taxes has been collected on light diesel oil every litre while of the distribution and transport cast, a tax of Rs2.38 has been collected per litre.
In the Senate meeting, it was also briefed that the government has been buying petrol at a rate of Rs62.55, however, the selling price is Rs98.89 per litre.
Same as with diesel, the government’s buying cost is Rs70.26 whereas it is sold at the rate of Rs117.43 per litre.
The buying price of kerosene oil is Rs69.65 and the selling price is Rs89.31 per litre.
The government has been buying light diesel oil at a price of Rs66.44 and is selling it at a rate of Rs80.54 per litre as per the documentation.