Govt Increases Petroleum Levy by Rs 13.91 Per Litre on Petrol, Diesel

The government has revised the increase in petroleum levy on petrol and diesel through a notification issued by the Ministry of Finance of Pakistan, analysts say, which could further increase inflationary pressures.litre

The notification said that the petroleum levy on petrol has been increased from Rs 103.50 to Rs 117.41 per litre. The levy on high-speed diesel has also been increased from Rs 28.69 to Rs 42.60 per litre, reflecting an increase of Rs 13.91 per liter on both products.

Economists noted that higher fuel taxes generally increase transportation and production costs, which can later affect consumer prices of essential commodities.

The government has also decided to impose a carbon levy on furnace oil for the first time. Under the new mechanism, the carbon levy on furnace oil will be Rs 2,665 per metric tonne.

Market observers believe the latest tax measures are aimed at increasing revenue collection and meeting fiscal targets. However, they cautioned that the decision could impose an additional burden on households already struggling with rising utility tariffs and food inflation.

Transporters and industry stakeholders are expected to closely monitor the impact of the levy hike on fuel consumption and operating costs in the coming weeks.