The federal government has once again raised the petroleum development levy (PDL) on Motor Spirit (MS) petrol by Rs. 8.02, bringing the new levy rate to Rs. 78.02 per liter for retail sales, as per the latest notification issued by the Ministry of Energy (Petroleum Division). The new rates come into effect starting April 16, 2025.
For high-speed diesel (HSD), the levy has been set at Rs. 77.01 per liter for retail sales, while direct sales will now incur an even higher levy of Rs. 85.65 per liter. Similarly, the levy on direct sales of petrol has been fixed at Rs. 86.66 per liter.
The government has also revised levies on other petroleum products:
| Product | Petroleum Levy (Retail Sales) | Petroleum Levy (Direct Sales) |
|---|---|---|
| Motor Spirit (Petrol) | Rs. 78.02 per liter | Rs. 86.66 per liter |
| HOBC (97 RON) & MS 95 RON | Rs. 78.02 per liter | Rs. 80.17 per liter |
| Kerosene Oil | Rs. 18.95 per liter | Rs. 18.95 per liter |
| High-Speed Diesel | Rs. 77.01 per liter | Rs. 85.65 per liter |
| Light Diesel Oil | Rs. 15.37 per liter | Rs. 15.37 per liter |
| E-10 Gasoline | Rs. 51.53 per liter | Rs. 60.17 per liter |
Legal Cap on Levy Removed via Presidential Ordinance
In a significant policy shift, the government has also abolished the Fifth Schedule of the Petroleum Development Levy Ordinance through a presidential ordinance.
Previously, the Fifth Schedule limited the maximum levy on petroleum products to Rs. 70 per liter. With this cap now eliminated, the government has the power to impose levies without restriction.
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While the move offers the government more fiscal flexibility, it has sparked concerns over further fuel price hikes for businesses and the public.
