The federal government has set the Petroleum Development Levy (PDL) on petrol at Rs. 70 per liter, while high-octane fuel users are paying a lower levy of Rs. 50 per liter.
Petrol, primarily used by motorcyclists and older car owners, now carries a higher tax burden compared to high-octane fuel, which is mostly used in luxury vehicles. The levy on high-speed diesel has also been maintained at Rs. 70 per liter.
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Previously, the levy on petrol stood at Rs. 60 per liter, but in the last fortnightly price review on March 15, the government raised it by Rs. 10 per liter, bringing it to Rs. 70 per liter. Officials claim that the additional revenue will help lower electricity prices by approximately Rs. 1.50 per unit.
“We have decided to keep petroleum prices unchanged and use the financial benefit to reduce electricity costs,” the prime minister stated during the price announcement.
The move has sparked debate, with critics arguing that the tax structure favors high-octane users while placing a greater financial strain on lower-income petrol consumers.