Govt Again Increases Petroleum Levy on Petrol, Diesel, High Octane

The government has further increased the petroleum levy on Motor Spirit (MS) petrol by Rs. 8.02, bringing it to Rs. 78.02 per liter for retail sales, according to the latest notification issued by the Ministry of Energy (Petroleum Division). The decision comes into effect on April 16, 2025 (today). The levy on high-speed diesel has been set at Rs. 77.01 per liter for retail sales, with direct sales incurring a higher levy of Rs. 86.66 per liter for petrol and Rs. 85.65 per liter for diesel. Meanwhile, the levy on E-10 gasoline has been fixed at Rs. 51.53 per liter for retail sales and Rs. 60.17 per liter for direct sales. The Petroleum Division has further raised the petroleum development levy on High Octane Blending Component (HOBC) to Rs. 78.02 per liter at retail outlets and Rs. 80.17 per liter for direct sales. This comes as the federal government has now opted to abolish the Fifth Schedule of the Petroleum Development Levy through a presidential ordinance, removing the legal cap on the maximum levy that can be imposed on petroleum products. Previously, under the Fifth Schedule of the Petroleum Development Levy Ordinance, the government was restricted to imposing a maximum levy of Rs. 70 per litre. With the removal of this schedule, there is no longer any legal limit, allowing the government to set the levy at any rate it deems necessary. The move grants the government greater fiscal flexibility but also raises concerns over further fuel price hikes for all consumers.