The federal government has reduced the petroleum levy charged to petrol consumers by Rs. 1.65 per litre under a revised pricing formula, shifting part of the burden to oil refineries.

The levy paid by consumers has decreased from Rs. 65.29 to Rs. 63.64 per litre, providing some relief to petrol buyers.

Refineries to Bear Rs. 16.36 Per Litre

Under the revised arrangement, oil refineries will absorb Rs. 16.36 per litre of the petroleum levy.

The government will continue collecting the full levy of Rs. 80 per litre, with consumers paying Rs. 63.64 and refineries bearing the remaining Rs. 16.36.

The government introduced the revised petrol pricing mechanism around two weeks ago to reduce the burden on consumers without affecting its overall petroleum levy collection.

The arrangement effectively shifts part of the levy burden from petrol buyers to refineries rather than reducing the total amount collected by the government.