The federal government has reduced the burden of petroleum levy on petrol consumers by Rs 1.65 per liter, while the burden of this reduction has been transferred to refineries.
Under the new pricing formula, the petroleum levy collected from consumers has been reduced from Rs 65.29 to Rs 63.64 per liter.
According to the government decision, petrol refineries will now pay Rs 16.36 per liter under petroleum levy, which will reduce the direct financial burden on consumers.
Under the new procedure, the government will continue to collect a total of Rs 80 per liter of petroleum levy. Of this, Rs 63.64 will be borne by consumers while Rs 16.36 will be borne by refineries.
Earlier, a levy of Rs 65.29 per liter was being collected from consumers, while the share of refineries was Rs 14.71 per liter.
The government has introduced this new mechanism to provide additional relief to consumers, however, it will not reduce the overall collection of petroleum levy.
According to the notification dated November 11, 2026 of the Petroleum Division of the Ministry of Energy, the new rates have been implemented from November 12.
Thus, the government has divided the burden of paying it between consumers and refineries while maintaining the overall levy.
| Description | Old Formula | New Formula |
|---|---|---|
| Levy on consumers | Rs 65.29 | Rs 63.64 |
| Share of refineries | 14.71 rupees | 16.36 rupees |
| Total levy | 80 rupees | 80 rupees |
