The federal government has significantly reduced the petroleum development levy (PDL) on petrol while increasing the levy on high-speed diesel, bringing the average levy on both fuels to below Rs. 80 per litre.
According to sources in the Petroleum Division, the levy on petrol has been reduced by Rs. 40.49 per litre, falling from Rs. 106.74 to Rs. 66.25 per litre. Meanwhile, the levy on diesel has been increased by Rs. 19.71 per litre, rising from Rs. 53.26 to Rs. 72.97 per litre.
Officials said the adjustment was made after the government successfully achieved its petroleum levy collection target for the current fiscal year.
Following the revision, the combined levy on petrol and diesel stands at Rs. 139.22 per litre, lowering the average levy on the two major petroleum products to below Rs. 80 per litre.
Petroleum levy collections have emerged as one of the government’s largest sources of non-tax revenue in recent years and play a key role in supporting fiscal targets agreed with the International Monetary Fund (IMF).
The government has frequently used adjustments in the petroleum levy to balance fuel pricing decisions while maintaining revenue generation and meeting budgetary requirements.
The latest revision comes amid broader changes in petroleum pricing and is expected to influence fuel taxation and revenue collection strategies in the coming fiscal year.
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