Federal Budget 2024-25 Proposes Major Hike in Petroleum Development Levy

The federal government has announced a major increase in the development levy on petroleum products as part of its budget for the fiscal year 2024-25.

This proposal, introduced in the National Assembly, aims to raise the development levy on petrol from Rs 60 to Rs 80 per litre.

During the budget presentation, the finance minister detailed the government’s financial strategies and plans for the coming year. Among the key measures, the proposed hike in the petroleum development levy (PDL) is particularly notable, highlighting the government’s effort to enhance revenue in the face of economic challenges.

According to the budget documents, the development levy on petrol is set to rise significantly by Rs 20 per litre, moving from the current Rs 60 to Rs 80 per litre. This increase is anticipated to generate substantial additional revenue for the government.

Federal Budget 2024-25 Proposes Major Hike in Petroleum Development Levy

However, this hike is also expected to impact the cost of living, as it will likely lead to higher transportation and production costs.

The government has also proposed a rise in the levy on light diesel oil, increasing it from Rs 50 to Rs 75 per litre, marking a significant Rs 25 jump.

On the other hand, the development levy on kerosene will remain at Rs 50 per litre, providing some relief to users of this essential fuel, commonly used in rural and low-income households.