ISLAMABAD: The government’s decision to reduce the rate of petroleum levy (PL) on petrol by Rs 80 per litre for one month may lead to a revision of the budgeted levy target for the current fiscal year, sources said.
On Friday, Prime Minister Shehbaz Sharif announced a slash of Rs 80 per litre on petrol, reducing it from Rs 160.61 to Rs 80.61 per litre effective from April 4, 2026.
This makes the price of petrol drop to Rs 378.41 per litre from Rs 458,41 per litre. The rate of HSD remains same at Rs 520.35 per litre
On Thursday, the government had already removed the PL of Rs 55.24 per litre on High-Speed Diesel (HSD) and adjusted the PL on petrol by increasing it by the same proportion.
READ MORE: Massive hike in prices of petrol, HSD announced
The government removed the PL on HSD to keep prices low, as it is widely used in agriculture and public transport.
In the current fiscal year, the PL budgeted target was set at Rs 1.468 trillion by removing the cap on the limit of PL through the Finance Bill 2025-26. In the first six months (July–December 2025), the government collected Rs 82 billion in PL on petrol.
Sources said the reduction in petrol price was announced after the approval from IMF.
Copyright Business Recorder, 2026
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