In a bid to meet its revenue targets for the current fiscal year, the federal government has increased the petroleum levy (PL) by Rs18.02 per litre on petrol and Rs17.01 per litre on high-speed diesel (HSD), since March 16, 2025. This move is expected to generate an additional Rs90 billion over the remaining three and a half months of the fiscal year.
The updated petroleum levy now stands at Rs78.02 per litre for petrol and Rs77.01 per litre for high-speed diesel.Â
Prior to this adjustment, the maximum cap on the levy was set at Rs60 per litre, which was later raised to Rs70 per litre in the current federal budget. However, following the issuance of a presidential ordinance, the levy amount is now uncapped, allowing for further adjustments in the future.
The government’s revised tax measures come amid efforts to secure additional revenue for the fiscal year. The new rates are expected to bring in an estimated Rs300 billion annually. In the current fortnight beginning May 1, the ex-refinery prices of petrol and HSD were calculated at Rs1.40 and Rs1.93 per litre, respectively, reflecting a reduction of Rs2 per litre on both products.
The government also adjusted the margin-related components, including a reduction in the Import Parity Price (IFEM). The IFEM for petrol has been decreased by 59 paisa, from Rs6.89 to Rs6.30 per litre, while HSD saw a 26 paisa reduction, from Rs3.59 to Rs3.33 per litre.
Despite these adjustments, the petroleum levy on both petrol and HSD remained unchanged from the previous fortnight ending April 30, 2025. Both products continue to be exempt from general sales tax.
