The government has once again raised the petroleum levy on various fuel products, including Motor Spirit (MS) petrol, diesel, and High Octane. According to a new notification issued by the Ministry of Energy (Petroleum Division), the levy on petrol has been increased by Rs. 8.02, bringing the total to Rs. 78.02 per liter for retail sales, effective April 16, 2025.
The levy on high-speed diesel now stands at Rs. 77.01 per liter for retail sales. For direct sales, the levies are even higher—Rs. 86.66 per liter for petrol and Rs. 85.65 per liter for diesel.
E-10 gasoline will be subject to a petroleum levy of Rs. 51.53 per liter for retail and Rs. 60.17 per liter for direct sales.
Additionally, the levy on the High Octane Blending Component (HOBC) has also been revised. It now stands at Rs. 78.02 per liter at retail outlets and Rs. 80.17 per liter for direct sales.
Here’s a breakdown of the updated petroleum levies:
| Product | Retail Sale Levy | Direct Sale Levy |
|---|---|---|
| Motor Spirit (Petrol) | Rs. 78.02/liter | Rs. 86.66/liter |
| HOBC (97 RON) & MS 95 RON | Rs. 78.02/liter | Rs. 80.17/liter |
| Kerosene Oil | Rs. 18.95/liter | Rs. 18.95/liter |
| High-Speed Diesel | Rs. 77.01/liter | Rs. 85.65/liter |
| Light Diesel Oil | Rs. 15.37/liter | Rs. 15.37/liter |
| E-10 Gasoline | Rs. 51.53/liter | Rs. 60.17/liter |
This change follows the federal government’s move to abolish the Fifth Schedule of the Petroleum Development Levy via a presidential ordinance. Previously, the schedule capped the maximum petroleum levy at Rs. 70 per liter. With its removal, there is now no legal limit, giving the government the authority to impose levies at its discretion.
While the decision gives the government more financial leeway, it also raises concerns about potential increases in fuel prices for the general public.
