Record Increase in Petroleum Levy Pushes Fuel Costs Higher

Islamabad: The federal government has issued a new notification announcing a record increase in the Petroleum Levy, marking what is being described as the largest tax hike on fuel in the country’s history.

According to the latest details, the levy on petrol has been raised to over PKR 160 per liter, significantly contributing to the rising cost of fuel for consumers. This increase is expected to directly impact retail prices, adding further financial pressure on the public.

Meanwhile, the levy on high-speed diesel has been kept at zero for now, offering temporary relief in that segment. However, taxes on high-octane fuel have surged sharply, crossing the PKR 300 per liter mark, making it one of the most heavily taxed petroleum products.

The new taxation measures are likely to intensify concerns about inflation, as higher fuel costs typically lead to increased transportation and production expenses, ultimately affecting the prices of essential goods.