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Government Increases Petroleum Levy by Rs10 per Liter, Offsetting Global Oil Price Drop

Despite a notable decline in global petroleum prices, the federal government has raised the petroleum levy on petrol by Rs10 per liter, limiting direct relief for consumers.

According to official sources, a notification has been issued following federal approval, increasing the levy from Rs60 to Rs70 per liter, effective March 16. The decision comes as international oil prices had provided room for a reduction of up to Rs15 per liter, but the increased levy has absorbed this potential relief.

Government officials disclosed that savings from lower global oil prices are being redirected to offset electricity tariffs. This shift aims to ease the burden of high power costs while maintaining petroleum prices at current levels.

On the night of March 15, Prime Minister Shehbaz Sharif announced that fuel prices would remain unchanged. However, he assured the public of a notable reduction in electricity rates. He further stated that the government is working on a comprehensive relief package, which is expected to be revealed in the coming weeks.

The move underscores the government’s strategy to manage economic pressures while addressing energy costs, though it has left fuel consumers without the expected price cut.

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