Motorcyclists Paying Higher Levy on Petrol as Luxury Car Owners Get ‘Discount’

The federal government is charging a higher Petroleum Development Levy (PDL) of Rs. 70 per liter on petrol while collecting a substantiality lower levy on high-octane. Motorcyclists and old car users primarily use petrol while high-octane is preferred by owners of luxury cars. Compared to the Rs. 70 per liter levy on petrol, the government is only collecting Rs. 50 per liter levy on high-octane. This effectively means that high-octane users have been given a discount while motorcyclists pay a higher levy. The levy collected on hi-speed diesel is also Rs. 70 per liter. Previously, the government was collecting Rs. 60 per liter levy on petrol, however, at the last fortnightly review of petroleum prices on March 15, the government further increased the petroleum levy by Rs. 10 per liter, taking it to Rs. 70 per liter. The government claims that the additional Rs. 10 per liter will be used to reduce the electricity prices by around Rs. 1.50 per unit. “We have decided to maintain petroleum prices at their current levels and transfer the full financial benefit to the public by reducing electricity prices,” the prime minister said at the time of announcement of petroleum prices for the current fortnight.