Islamabad: The federal government has reduced the burden of petroleum levy on petrol consumers by Rs 1.65 per litre, while the burden of this reduction has been shifted to oil refineries.
Under the government’s revised pricing mechanism, the petroleum levy collected from consumers has been reduced from Rs 65.29 to Rs 63.64 per litre.
According to the new formula, oil refineries will now pay Rs16.36 per litre as petroleum levy, which will help reduce the direct financial burden on consumers.
The government has maintained the overall petroleum levy at Rs 80 per litre. Under the new system, Rs 63.64 of this will be collected from consumers, while the remaining Rs16.36 will be borne by refineries.
Earlier, the levy on consumers was Rs 65.29 per litre, while the share of refineries was Rs 14.71 per litre.
According to a notification by the Petroleum Division of the Ministry of Energy, the revised mechanism has come into effect from November 12, 2026.
The government has introduced this mechanism to provide relief to consumers in petrol prices; however, no reduction has been made in the overall collection of petroleum levy through it.
The main objective of this measure is to share the financial burden of the levy between consumers and oil refineries while maintaining government revenues.
Thus, instead of an overall reduction in the petroleum levy, the government has changed the method of payment, under which consumers have been given an additional relief of Rs. 1.65 per litre.
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