The Petroleum Levy (PL) on diesel remains lower than its level before the Gulf crisis, as the government had temporarily reduced the levy to provide relief to consumers amid a sharp rise in international diesel prices, said Adviser to the Finance Minister, Khurram Schehzad here Friday.
Petroleum Levy on diesel still below pre-Gulf crisis level: Khurram Schehzad
ISLAMABAD, Aug 7 (APP): The Petroleum Levy (PL) on diesel remains lower than its level before the Gulf crisis, as the government had temporarily reduced the levy to provide relief to consumers amid a sharp rise in international diesel prices, said Adviser to the Finance Minister, Khurram Schehzad here Friday.
Schehzad posted on X that the temporary reduction was aimed at preventing the full impact of higher global oil prices from being passed on to transporters, farmers, and other diesel users.
He noted that the revenue estimates for the current fiscal year, approved by the National Assembly, are based on an average Petroleum Levy rate of Rs80 per litre on both diesel and petrol.
“Meeting these revenue targets is essential to finance budgeted expenditures and maintain fiscal stability,” Schehzad said.
The adviser added that as international oil prices ease, a gradual restoration of the levy toward its budgeted level is a prudent and fiscally responsible approach rather than maintaining an emergency reduction indefinitely.
He warned that a shortfall in petroleum levy revenues could widen the fiscal deficit, creating greater economic pressures and increasing costs for the public.
Schehzad said the recent adjustments should be viewed as a phased normalization of a temporarily reduced levy and not as an arbitrary or unexpected increase in taxation.
