The federal government has put forth a substantial increase in the development levy on petroleum products as part of its budget proposal for the fiscal year 2024-25.
Presented in the National Assembly, the proposal entails raising the development levy on petrol from Rs 60 to Rs 80 per liter.
During the budget presentation, the finance minister outlined various fiscal plans and strategies for the upcoming year, with the hike in petroleum development levy (PDL) emerging as a notable measure. This increase reflects the government’s efforts to bolster revenue amidst prevailing economic challenges.
According to budget documents, the development levy on petrol is slated for a significant Rs 20 per litre hike, soaring from Rs 60 to Rs 80 per liter, aimed at generating substantial additional revenue.
However, this move is expected to have a cascading effect on living costs, as transportation and production expenses are poised to escalate.
In addition to the petrol surge, the government has proposed an increase in the levy on light diesel oil, set to climb from Rs 50 to Rs 75 per litre, marking a notable Rs 25 increment in the proposed budget.
Meanwhile, the development levy on kerosene remains unchanged at the existing rate of Rs 50 per litre, offering some relief to users of this essential fuel, particularly in rural and low-income households.