Government Scraps Fuel Subsidy, Raises Petroleum Levy by Rs55 per Litre

Islamabad (Qudrat Daily) – The government has removed subsidies on petrol and diesel and significantly increased the petroleum levy, further adding to the financial burden on consumers.

According to reports, the levy on petrol has been increased by Rs55 per litre, pushing it to a record high of Rs160.61 per litre, compared to the previous Rs106. The move is expected to boost non-tax revenue, as the government has set a target of Rs1,468 billion in petroleum levy collection for the current fiscal year.

Under pressure from the International Monetary Fund, the government has also abolished subsidies on fuel. Subsidies of Rs95 per litre on petrol and Rs203 per litre on diesel have been withdrawn, shifting the entire burden onto consumers.

Earlier, the government raised petrol prices by Rs137.23 per litre to Rs458.41, while high-speed diesel increased by Rs184.49 per litre to Rs520.35.

Meanwhile, jet fuel prices for commercial flights have also surged sharply, marking the sixth increase within a month. Sources said the price of jet fuel has been raised by an additional Rs40 per litre, reaching a record Rs517.17 per litre. Since March 1, prices have increased by a total of Rs329.17 per litre.

Experts warn that the continuous rise in jet fuel prices will significantly increase airline operational costs, likely leading to higher fares for both domestic and international flights. Aviation sources cautioned that if the trend continues, air travel could become even more expensive in the coming days.