The federal government is imposing a higher Petroleum Development Levy (PDL) of Rs. 70 per liter on petrol, while charging a significantly lower levy of Rs. 50 per liter on high-octane fuel.
Petrol is primarily used by motorcyclists and owners of older vehicles, whereas high-octane is preferred by luxury car owners. This disparity in taxation effectively grants a discount to high-octane users while placing a greater financial burden on motorcyclists. Similarly, the levy on high-speed diesel is also set at Rs. 70 per liter.
Read More: Pakistan Raises Petroleum Levy to Rs70 per Liter
Previously, the government was charging Rs. 60 per liter on petrol. However, during the last fortnightly review of petroleum prices on March 15, the levy was increased by Rs. 10 per liter, raising it to Rs. 70 per liter.
The government has justified this increase by stating that the additional Rs. 10 per liter will be used to lower electricity prices by approximately Rs. 1.50 per unit.
“We have decided to keep petroleum prices unchanged and pass on the full financial benefit to the public by reducing electricity tariffs,” the prime minister stated while announcing the petroleum prices for the current fortnight.
