The government has revised the petroleum development levy (PDL) on petroleum products, significantly reducing the levy on petrol while increasing it on high-speed diesel, according to sources in the Petroleum Ministry.
The adjustment comes after the government achieved its petroleum levy target for the current fiscal year, prompting changes in the tax structure on fuel products.
According to Petroleum Ministry sources, the petroleum development levy on petrol has been reduced by Rs40.49 per litre.
Following the revision, the levy on petrol has been brought down from Rs106.74 per litre to Rs66.25 per litre. The reduction is expected to lower the tax burden attached to petrol and marks one of the most significant adjustments in recent months.
Diesel levy increased
At the same time, the government has increased the petroleum levy on diesel by Rs19.71 per litre. As a result, the levy on diesel has risen from Rs53.26 per litre to Rs72.97 per litre.
The move effectively shifts a larger portion of the levy burden toward diesel while reducing it on petrol.
Average levy now below Rs80
Sources said that after the latest revision, the average petroleum levy on petrol and diesel now stands at less than Rs80 per litre. The combined levy on both petroleum products totals Rs139.22 per litre.
Officials noted that the adjustment was made while maintaining overall revenue considerations linked to petroleum levy collections.
According to Petroleum Ministry sources, the government decided to revise the levy structure after successfully achieving its petroleum levy target for the current fiscal year.
The change reflects the government's effort to rebalance the levy on petroleum products following the attainment of revenue goals.
Further details regarding the impact of the revised levy structure on future fuel pricing are yet to be officially announced.
