Proposed increase in petroleum levy to be implemented gradually, says Aurangzeb

ISLAMABAD: Finance Minister Muhammad Aurangzeb announced today in Islamabad that the increase in the petroleum development levy (PDL) proposed in the federal budget will be implemented gradually.

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This will to done to align fuel prices with international oil market rates. He made these remarks during his post-budget press briefing, he clarified that the phased approach will prevent an immediate spike in fuel prices starting July 1, 2024.

In his budget presentation to parliament on Wednesday, the Finance Minister had detailed that the maximum petroleum levy on petrol and high-speed diesel will rise to Rs 80 per litre, marking an increase of Rs 20 per litre from the previous rate of Rs 60.

Additionally, the levy on Light Diesel Oil (LDO), High Octane Blending Component (HOBC), and E-10 gasoline will be increased by Rs 25 per litre, bringing the new rate to Rs 75 per litre.

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It is important to note that the current petroleum levy on petrol and high-speed diesel stands at Rs 60 per litre. The gradual increase aims to soften the impact on consumers while adjusting to global oil price trends.