Govt adjusts petroleum levy on major fuel products

ISLAMABAD: In an effort to contain rising inflation and provide relief to the general public, the federal government has adjusted the petroleum levy on major fuel products with effective from Saturday.

According to sources, the petroleum levy on petrol has been slashed by Rs40.49 per litre, bringing it down from Rs106.74 to Rs66.25 per litre. However, the levy on High-Speed Diesel (HSD) saw an increase of Rs19.71 per litre, rising from Rs53.26 to Rs72.97 per litre.

The Petroleum Division on Friday notified a massive reduction in petroleum product prices following its weekly review. The new prices will take effect from June 20.

The price of petrol has been slashed by Rs74.28 per litre, bringing it down to Rs299.50 from the previous rate of Rs373.78 per litre. Similarly, High-Speed Diesel (HSD) saw a cut of Rs67.31 per litre, dropping from Rs378.78 to a new price of Rs311.47 per litre.

An official on the condition of anonymity told Business Recorder that the government has exceeded its budgetary target for the petroleum levy for the outgoing fiscal year (FY 2025-26). The government expressed optimism as revised estimates show petroleum levy collections will reach Rs1.49 trillion, exceed the initial budget target of Rs1.468 trillion, the official maintained.

The expected reduction follows a significant fall in international crude oil prices. Arab Light crude oil, a benchmark grade, has declined by USD 16 per barrel within a week, falling from USD 96 per barrel on June 11 to USD 80 per barrel on June 18. Pakistan’s most of the fuel import in refined which is expensive than crude oil.

Copyright Business Recorder, 2026