The federal government has raised the petroleum levy on petrol and high-speed diesel while deciding to keep retail fuel prices unchanged for the coming week, providing temporary relief to consumers despite increasing tax collection through the levy.
According to sources in the Petroleum Division, the petroleum levy on high-speed diesel has been increased by Rs6.57 per litre, taking the total levy to Rs79.54 per litre. Diesel is widely used in the transport, agriculture and industrial sectors, making changes in its taxation significant for the overall economy.
The government has also marginally increased the petroleum levy on petrol by Rs0.39 per litre, raising the total levy to Rs66.64 per litre. Petrol remains the primary fuel used by private vehicles and motorcycles across the country.
In contrast, the petroleum levy on kerosene oil has been left unchanged at Rs20.36 per litre.
Despite the increase in petroleum levy rates, the government has decided not to revise retail prices of petrol and diesel for the next week. Officials said the decision was made after taking into account fluctuations in international oil prices and the overall fiscal position.
The move allows the government to generate additional revenue through the petroleum levy without passing on an immediate increase in fuel prices to consumers. Petroleum levy collections have become an important source of revenue for the federal government and are often adjusted in line with budgetary requirements.
Economists believe that maintaining fuel prices while increasing the levy helps the government strengthen its revenue base, although higher taxation on petroleum products could eventually have implications for transportation costs and inflation if international oil prices rise further.
