Petroleum levy rates adjusted without altering revenue target
The government adjusted petroleum levies, reducing petrol's levy while increasing HSD's, effective May 23, 2026, to maintain revenue targets amidst price changes.
- Adjustments to petrol and HSD petroleum levy rates.
- New consumer prices for petrol and high-speed diesel.
- Changes in ex-refinery prices and IFEM.
ISLAMABAD: The government has maintained its overall revenue target while adjusting the petroleum levy (PL) rates. The levy on petrol has been reduced, while the rate for High-Speed Diesel (HSD) has been increased with effect from May 23, 2026 in a weekly review of petroleum products prices.
According to the notification, the petroleum levy on HSD has jumped by Rs 15.40, rising to Rs 58 per litre from the previous week’s Rs 42.60. Conversely, the levy on petrol has been slashed by Rs 6, bringing it down to Rs 102.17 per litre from Rs 108.17. Meanwhile, the Climate Support Levy remains unchanged at Rs 2.50 per litre for both products.
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The government announced the new consumer price for petrol at Rs 403.78 per litre and HSD at Rs 402.78 per litre. The ex-refinery price for HSD decreased to Rs 322.28 per litre (down from Rs 337.51), while petrol increased slightly to Rs 277.06 per litre (up from Rs 275.04).
The IFEM for HSD increased to Rs 3.49 per litre (up from Rs 1.06), while the IFEM for petrol was reduced to Rs 5.54 per litre (down from Rs 7.56).
Copyright Business Recorder, 2026