Govt holds fuel levy steady, approves Rs23bn subsidy
“Islamabad has kept the petrol and diesel levy unchanged and approved a Rs23 billion subsidy to stabilise fuel prices.”
Key points
- Islamabad has kept the petrol and diesel levy unchanged and approved a Rs23 billion subsidy to stabilise fuel prices.
- The decision is meant to ease consumer pressure while the government manages revenue targets and rising energy market uncertainty.
The federal government has decided to keep the petroleum levy unchanged on both petrol and high-speed diesel, while approving a Rs23 billion subsidy to prevent a further increase in fuel prices for the current review period. Under the decision, the levy on petrol will remain at Rs105.37 per litre and on diesel at Rs55.24 per litre.
Officials said the subsidy will cover the period from March 14 to March 20, with Ogra set to release funds after auditing claims from oil marketing companies. The move is aimed at cushioning consumers from additional pressure while global energy markets remain volatile.
At the same time, the government has raised the price of kerosene oil, taking it to Rs358.01 per litre. Authorities also linked the levy policy to broader fiscal commitments, including non-tax revenue goals tied to the IMF programme, while Prime Minister Shehbaz Sharif approved the transfer of funds into a thrift mechanism.
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