Petroleum levy: Pakistan cuts petrol tax while raising diesel charges in major revision

The government has revised the petroleum development levy (PDL) on fuel products, lowering charges on petrol while increasing them on high-speed diesel, according to Petroleum Ministry sources.

Officials said the adjustment follows the achievement of the annual revenue target for petroleum levy collections, allowing authorities to restructure the tax burden across fuel categories.

Under the new framework, the levy on petrol has been reduced by Rs40.49 per litre, bringing it down from Rs106.74 to Rs66.25 per litre. The change is expected to ease the overall tax component in petrol pricing.

At the same time, the levy on diesel has been increased by Rs19.71 per litre, raising it from Rs53.26 to Rs72.97 per litre. The revised structure places a comparatively higher burden on diesel consumers.

Sources said the average levy across petrol and diesel now stands below Rs80 per litre, while the combined levy collection from both fuels totals Rs139.22 per litre.

Officials indicated that the government adjusted the structure after meeting its fiscal target for the current financial year, aiming to rebalance revenue distribution between petroleum products.

The revised levy may influence future fuel pricing, although authorities have not yet issued further details on its impact at the consumer level.