The National Petroleum Authority (NPA) has rescinded its decision to suspend the Price Stabilization and Recovery Levy (PSRL) on petroleum product prices, Joy Business reports.
On March 28, 2024, the NPA had announced the suspension of the PSRL on petroleum product price build-up until June 30, 2024, following a directive from the Finance Ministry in collaboration with the Energy Ministry.
However, in a letter dated April 3, 2024, addressed to key players in the oil marketing and distribution sector, the NPA outlined the reinstatement of the levy, effective April 4, 2024.
Under the directive, Oil Marketing Companies and other industry stakeholders are instructed to apply a levy of 16 pesewas per litre on petrol, 14 pesewas per litre on diesel, and 14 pesewas per kilogram of Liquefied Petroleum Gas (LPG).
The rationale behind the NPA’s reversal remains unclear.
According to Joy Business, the NPA’s decision is expected to lead to an increase in petroleum product prices effective April 4, 2024. Previous price adjustments made by Oil Marketing Companies on April 1 did not account for the reinstated PSRL. Consequently, consumers can anticipate an additional charge of 16 pesewas per litre on petrol, 14 pesewas per litre on diesel, and 14 pesewas per kilogram of LPG.
Reports indicate that some Oil Marketing Companies have confirmed their intention to adjust pump prices accordingly from April 4, 2024.