ISLAMABAD, March 18: The federal government expects to generate additional revenue by increasing the petroleum levy (PL) on petrol and high-speed diesel (HSD) by Rs10 per litre, effective from March 15 to 31, raising the PL from Rs60 to Rs70 per litre.
This move is anticipated to boost revenue for the government during the second half of the fiscal year.
As of February 2025, the petroleum levy had already generated Rs718 billion in the first eight months of the fiscal year (July–February 2024–25), moving toward the annual target of Rs1.28 trillion, according to sources in the Petroleum Division.
In an announcement made on Saturday, the prime minister confirmed that the government would maintain current petroleum prices.
However, the anticipated relief would be passed on to consumers through lower electricity bills instead.
Revenue from Levy
For the first half of FY24, the government collected Rs472.7 billion from the petroleum levy, showing a steady revenue stream from the sector.
Additionally, the sales of petroleum products have grown by 4.0% year-over-year, reaching 10.55 million tonnes in the first eight months, compared to 10.18 million tonnes during the same period last year.
The revised petroleum levy rates, effective for the current fortnight, include an increase of Rs10 per litre on both petrol and HSD, raising the levy from Rs60 to Rs70 per litre.
Read More: Govt Raises Petroleum Levy by Rs. 10/Liter to Fulfill IMF Conditions
Furthermore, the levy on kerosene oil has been raised by Rs10.96 per litre, light diesel oil (LDO) by Rs7.75 per litre, and high-octane blending component (HOBC) by Rs50 per litre.
Levy Also Up for other Petroleum Products
Documents indicate that the expected rise in the ex-refinery price of petrol is Rs9.53 per litre due to the reduction in the average price of Platts with incidentals and duties by Rs12.71 per litre, dropping the price from Rs173.33 to Rs160.61 per litre.
This is further impacted by a Rs3.18 per litre Pakistan State Oil (PSO) exchange adjustment.
Similarly, the Import Parity Price (IFEM) for petrol has been reduced by 46 paisa, from Rs5.79 to Rs5.33 per litre.
Also Read: Govt Achieves Highest Petroleum Levy Collection in Fiscal H1
For HSD, the ex-refinery prices were reduced by Rs9.17 per litre, from Rs178.90 to Rs169.73 per litre.
Following a reduction in the average price of Platts with incidentals and duties by Rs9.36 per litre, from Rs177.56 to Rs168.20 per litre.
This is also affected by a 19 paisa increase in the PSO exchange rate, from Rs1.34 to Rs1.53 per litre.
Additionally, the IFEM for HSD has been reduced by Rs2.30 per litre, down from Rs2.92 to Rs2.30 per litre.
