ISLAMABAD: The federal government has raised the Petroleum Development Levy (PDL) on regular petrol, charging Rs. 70 per liter, while significantly reducing the levy on high-octane fuel, which is preferred by luxury car owners, to Rs. 50 per liter.
This move has sparked concerns among motorcyclists and owners of older vehicles who predominantly use regular petrol, as they are now shouldering a higher tax burden. In contrast, high-octane fuel users—typically those with expensive, luxury cars—are benefiting from a lower levy. The government has also set the PDL on high-speed diesel at Rs. 70 per liter, the same rate as for regular petrol.
Previously, the government had set the PDL on petrol at Rs. 60 per liter. However, in the latest review of petroleum prices on March 15, the government increased the tax by Rs. 10 per liter, bringing it to Rs. 70. The additional levy is part of a broader strategy to generate funds to reduce electricity prices by approximately Rs. 1.50 per unit, according to government statements.
Prime Minister Imran Khan, while announcing the new petroleum prices, emphasized that the government would maintain the current fuel prices to ensure that the financial benefits would be transferred to the public through the reduction in electricity tariffs.
The increase in the petroleum levy has drawn attention to the disparity between the tax burdens on different segments of the population, with some arguing that the government’s approach favors wealthier luxury car owners at the expense of everyday consumers, especially motorcyclists who rely on petrol for daily transportation.
As fuel costs continue to be a significant concern for the public, the government’s strategy of balancing petroleum prices with energy relief remains a key issue for consumers and businesses alike.
