Last 3-1/2 months of FY25: petroleum levy hike by Rs18.02 to generate Rs90bn revenue

ISLAMABAD: The federal government has to raise additional revenue of Rs90 billion in last three and a half months of current fiscal year by enhancing petroleum levy (PL) up to Rs18.02 per litre since March 16, 2025.

Petroleum levy on petrol has been increased by Rs18.02 from Rs60 to Rs78.02 per litre and raised by Rs17.01 per litre from Rs60 to Rs77.01 per litre since March 16, 2025.

According to an estimate, the additional collection in one year would be Rs300 billion.

Previously, the PL had a maximum cap of Rs60 per litre, which was later increased to Rs70 per litre in current federal budget.

Petrol and HSD: Govt to raise PL beyond permitted limit

However, following the issuance of the presidential ordinance, there is now no cap on the levy amount.

In current fortnight starting from May 1, the ex-refinery prices of petrol and HSD were calculated at Rs1.40 per litre and Rs1.93 per litre respectively and adjustment in margins enable the government to reduce the price of both petroleum products by Rs2 per litre.

The controversial IFEM was reduced on both products.

On petrol, the IFEM was reduced by 59 paisa from Rs6.89 to Rs6.30 per litre and it was also reduced by 26 paisa on HSD from Rs3.59 to Rs3.33 per litre.

Petroleum levy on both products were unchanged at previous fortnight ending on April 30, 2025.

The PL being charged on petrol was Rs78.02 per litre and on HSD it was Rs77.01 per litre. Where, there was zero general sales tax on petroleum products.

Copyright Business Recorder, 2025