Government changes petroleum levy as diesel burden rises
The government has revised petroleum levy rates on fuel products, reducing the levy on petrol while increasing the burden on high-speed diesel in a move likely to impact transport and commodity prices across the country.
According to sources in the Ministry of Petroleum, the petroleum levy on petrol has been reduced by Rs 9.24 per litre. Following the revision, the levy on petrol now stands at Rs 108.17 per litre compared to the previous rate of Rs 117.41 per litre.
However, the government simultaneously increased the petroleum levy on diesel by Rs 9.40 per litre. The levy on high-speed diesel has been raised from Rs 42.60 to Rs 52 per litre.
Officials said the revised levy structure is part of broader revenue management measures aimed at balancing fiscal targets while managing fuel pricing adjustments. The changes come at a time when global oil markets are witnessing volatility due to rising geopolitical tensions and fluctuating crude oil prices.
Economic analysts believe the increase in diesel levy may directly affect transportation costs, agriculture, and goods delivery services because diesel is widely used in trucks, buses, and farming machinery across Pakistan.
Transporters and business groups have already expressed concern that higher diesel-related costs could eventually lead to an increase in the prices of essential commodities and food items.
Meanwhile, consumers are closely monitoring whether the reduction in petrol levy will provide any meaningful relief in retail fuel prices during the next price review.