The federal government has raised the Petroleum Development Levy (PDL) on petrol to Rs. 70 per liter while maintaining a significantly lower levy of Rs. 50 per liter on high-octane fuel. This decision has sparked concerns among motorcyclists and owners of older vehicles, who primarily rely on petrol, as they now face a higher tax burden compared to luxury car owners who prefer high-octane fuel.

The PDL on high-speed diesel remains consistent at Rs. 70 per liter. Previously, the government had set the levy on petrol at Rs. 60 per liter, but during the latest review of petroleum prices on March 15, the government increased the levy by Rs. 10 per liter.

Officials have stated that the additional revenue generated from this increase will be utilized to lower electricity prices by approximately Rs. 1.50 per unit. Prime Minister Shehbaz Sharif emphasized the government’s commitment to maintaining current petroleum prices while ensuring that the financial benefits are passed on to the public through reduced electricity costs.

“We have decided to maintain petroleum prices at their current levels and transfer the full financial benefit to the public by reducing electricity prices,” the Prime Minister announced during the announcement of the new petroleum prices for the current fortnight.