Petrol levy raised by Rs24.74 despite fuel price cut

The federal government has significantly increased the petroleum levy on petrol, adding Rs24.74 per litre to the existing charge

Islamabad: The federal government has significantly increased the petroleum levy on petrol, adding Rs24.74 per litre to the existing charge, even as consumers received a modest reduction in petrol prices for the latest fortnightly review.

According to official details, the petroleum levy on petrol has been increased to Rs116.80 per litre following the latest adjustment. The move is expected to help the government generate additional revenue while maintaining its fiscal targets.

In contrast, the petroleum levy on high-speed diesel (HSD) has been substantially reduced. The levy on diesel has been cut by Rs24.34 per litre, bringing it down from Rs68.93 to Rs44.59 per litre. Despite this reduction in levy, the retail price of diesel has been left unchanged.

Meanwhile, kerosene consumers have been hit with a fresh increase in prices. Although the petroleum levy on kerosene remains unchanged at Rs20.36 per litre, the product’s retail price has been raised by Rs8.70 per litre. As a result, kerosene will now be sold at Rs280.70 per litre, compared to the previous rate of Rs272 per litre.

The latest adjustments come a day after the government announced revised petroleum product prices for the next fortnight. Under the new pricing structure, petrol has become cheaper by Rs4 per litre, offering limited relief to motorists amid persistent inflationary pressures.

A notification issued by the relevant authorities stated that the price of petrol has been reduced from Rs381.78 to Rs377.78 per litre. However, the price of high-speed diesel has been maintained at Rs380.78 per litre, with no change announced for the fuel widely used in the transport and agricultural sectors.

Economic analysts believe the government’s decision to alter petroleum levies while adjusting retail fuel prices reflects an effort to balance consumer relief with revenue generation requirements. Petroleum levies have become a key source of government income in recent years and play an important role in meeting budgetary and fiscal commitments.