Diesel levy raised again as petrol and HSD prices remain lower
The federal government has increased the petroleum levy on high-speed diesel by 81 paise per litre within just 24 hours, adding to the tax burden on the fuel.
Following the latest increase, the petroleum levy on high-speed diesel has reached Rs74.28 per litre. The levy has now risen by a total of Rs3.46 per litre over the past three days.
The government has, however, kept the petroleum levy on petrol unchanged at Rs80 per litre. In addition, a separate climate support levy of Rs5 per litre is being charged on both petrol and diesel.
The latest increase comes just a day after the government raised the diesel levy by Rs1.21 per litre, indicating a rapid adjustment in the charges imposed on high-speed diesel.
Despite the higher levy, the government recently announced a reduction in retail fuel prices. Petrol was reduced by Rs2.20 per litre, while high-speed diesel became Rs1.50 per litre cheaper.
Following the reduction, the new petrol price has been set at Rs327.62 per litre. The price of high-speed diesel has been fixed at Rs380.86 per litre.
The contrasting moves have drawn attention because consumers are getting some relief through lower retail prices while the government is simultaneously increasing the levy on diesel.
Higher fuel levies can affect transportation and operating costs, particularly because diesel is widely used by public transport, freight vehicles, agriculture and other commercial sectors.
The latest changes are expected to remain closely watched by consumers and businesses, especially if global oil prices or government revenue requirements lead to further adjustments in fuel taxes.