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Fifth Schedule for Petrol Levy Abolished, Govt Free to Set Levy Rates
The Fifth Schedule for petrol levy abolished via Presidential Ordinance, ending Rs 70/liter cap. Govt now free to set levy prices. Petrol levy raised by Rs 8.72, now at Rs 78.72/liter.
ND
by News Desk
2025-04-16
Fifth Schedule for Petrol Levy Abolished, Govt Free to Set Levy Rates

The Fifth Schedule for the petrol levy has been officially abolished in the Presidential Ordinance on Petrol Levy, reported Geo News. The move marks a significant shift in how the government can regulate and impose petrol levies.

What Does This Mean?

Under the previous provisions of the Fifth Schedule, the government was restricted in its ability to set petrol levy rates, with a cap of Rs 70 per liter. However, with the expiry of the Fifth Schedule, the government now has the flexibility to adjust petrol levies without being bound by a set upper limit.

Immediate Impact

In the first instance of this new flexibility, the government has raised the petroleum levy by Rs 8.72 per liter, increasing the price from Rs 70 to Rs 78.72 per liter. This adjustment reflects the ongoing changes in global oil prices, with the government moving quickly to align local prices with the international market.

For the past 15 days, the government has been adjusting the petrol levy in response to declines in global oil prices, raising the levy to offset lower market rates. This move is expected to bring in significant revenue for the government while managing the fluctuating cost of oil imports.

What’s Next?

The abolition of the Fifth Schedule provides the government with more autonomy in setting the petrol levy, which could see further changes in the coming months depending on the global oil market. It remains to be seen how this move will impact consumers, particularly with the potential for higher petrol prices in the future.
Tagged:

PakistanEconomy

PetrolPrices

FuelPrices

TaxPolicy

PetrolLevy
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