Petrol levy raised by Rs15.86 per litre in one week

The federal government has increased the petroleum levy on petrol by a total of Rs15.86 per litre within a single week

ISLAMABAD: The federal government has increased the petroleum levy on petrol by a total of Rs15.86 per litre within a single week, a move that has significantly affected the retail price of fuel despite changes in international oil markets.

According to official figures, the government has gradually raised the petroleum levy in two phases. Until July 3, the levy stood at Rs64.14 per litre. Effective July 4, it was increased by Rs6.22 per litre, followed by another increase of Rs9.64 per litre from July 11.

With these two revisions, the petroleum levy on petrol has now reached Rs80 per litre, marking an overall increase of Rs15.86 per litre in just seven days.

Data indicates that if the government had not imposed these additional levy increases, the retail price of petrol would have been substantially lower. Instead of the current Rs310.71 per litre, consumers would have been paying approximately Rs294.85 per litre, reflecting a difference equal to the latest levy hike.

The petroleum levy is a key source of revenue for the federal government and is collected on every litre of fuel sold across the country. Unlike certain taxes, the levy is deposited directly into the national exchequer and plays an important role in meeting revenue targets and financing public expenditures.

The latest increase comes at a time when motorists and transport operators are already facing higher operating costs. Industry observers believe that sustained increases in fuel charges could contribute to rising transportation expenses, which may eventually affect the prices of goods and services.

Despite public concern over fuel costs, the government has maintained the petrol price at Rs310.71 per litre, with the enhanced petroleum levy forming a significant portion of the amount consumers now pay at fuel stations.