Govt slashes petrol levy by Rs40.49 per litre, raises diesel levy by Rs19.71

The federal government has cut the petroleum levy on petrol by Rs40.49 per litre while increasing the levy on high-speed diesel by Rs19.71 per litre, alongside a sharp reduction in fuel prices effective June 20.

According to reports, the petroleum levy on petrol has been reduced to Rs 66.25 per litre from Rs 106.74 per litre.

However, the levy on high-speed diesel has been raised to Rs 72.97 per litre from Rs 53.26 per litre.

The Petroleum Division notified the revised petroleum product prices on Friday after its weekly review.

The price of petrol has been cut by Rs74.28 per litre to Rs299.50, compared with the previous rate of Rs373.78 per litre.

High-speed diesel has been reduced by Rs67.31 per litre to Rs311.47 from Rs378.78 per litre.

According to official sources, the government had exceeded its petroleum levy collection target for fiscal year 2025-26 by collecting Rs1.49 trillion, against the initial budget target of Rs1.468 trillion.

The reduction in domestic fuel prices also follows a decline in international crude oil prices. Arab Light crude fell by $16 per barrel in a week, dropping from $96 per barrel on June 11 to $80 per barrel on June 18.

Pakistan imports most of its fuel in refined form, which is more expensive than crude oil.