The government of Prime Minister Shehbaz Sharif has stopped a potential fuel price reduction. Officials confirmed that by amending the Petroleum Products (Petroleum Levy) Ordinance 1961, they blocked a decrease of about Rs10 per litre. As a result, the petroleum levy on petrol and diesel has now increased to Rs80 per litre.
Previously, the government had been charging the maximum permissible levy of Rs70 per litre. This new law ensures that fuel prices remain unchanged despite falling global prices. The government aims to prevent a price drop that could lead to increased demand and higher carbon emissions.
In the global market, petrol and diesel prices have recently decreased by around $6 and $5 per barrel. The prime minister stated that the additional funds from the levy will be used for road construction projects in Sindh and Balochistan. This move seems aimed at gaining support from coalition partners.
As a result of this decision, the ex-depot price of petrol stays at Rs254.63 per litre. High-speed diesel remains unchanged at Rs258.64 per litre. Currently, the government collects about Rs96-97 per litre from petrol and diesel as taxes, impacting the budgets of many middle and lower-middle-class families.