The government could have given relief to the double-digit inflation pressed masses by cutting down on the petroleum levy and sales tax that it collects on petrol, diesel and kerosene oil. A private TV channel, citing the data of Oil and Gas Regulatory Authority (OGRA), reported that the government was pocketing a total of Rs 24.58 in sales tax and petroleum levy on each litre of petrol. Had the government reduced its earnings to Rs 16.56 per litre, it could have avoided making petrol expensive by Rs 8.02, said a report by Geo News. On diesel, the government gets Rs 18.99 per litre in sales tax and petroleum levy.
Similarly, if the government would have settled for Rs 14.29, the people could have been spared from an increase of Rs 4.70 per litre in the rate of diesel. Petroleum levy and sales tax on a litre of kerosene oil contribute Rs 18.85 to the national kitty. The poor people could have been safeguarded from the price hike of Rs 5.29 if the government had shrunk it to Rs13.56.
