Business

Govt adjusts fuel levy rates to rebalance prices

Published by
Abdul khalique

ISLAMABAD: The federal government has significantly changed the rate of Petroleum Development Levy imposed on petroleum products, under which the levy has been increased to make diesel expensive, while the levy has been reduced to provide relief to petrol consumers.

The government has increased the levy on high-speed diesel by Rs 8.67 paise per liter, after which the levy on diesel has increased from Rs 44.59 paise to Rs 53.26 paise per liter.

On the other hand, the levy for petrol consumers has been reduced by Rs 9.24 paise per liter, due to which the levy on petrol has come down from Rs 116.8 paise to Rs 106.24 paise per liter.

The notification said that the levy rates on other fuels and petroleum products have been maintained as follows.

The levy rate on high octane is the highest, i.e., Rs 305.37 per liter, and the levy rate on furnace oil is Rs 77 per liter.

In addition, the old levy on kerosene has been maintained at Rs 20.36 per liter, while the levy rate on light diesel is Rs 15.84 per liter.

Economists say that the increase in levy on diesel may affect the fares of freight vehicles and the agriculture sector, while the reduction in levy on petrol will provide relief to owners of motorcycles and small vehicles.

Abdul khalique

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