ISLAMABAD – The federal government has abolished the Fifth Schedule related to the petroleum levy through a presidential ordinance, effectively removing the cap on the maximum levy that can be imposed on petroleum products.
The sources said that the ordinance was issued by the President of Pakistan which eliminated the statutory limit that previously restricted the government from charging more than Rs70 per liter as petroleum levy.
With the removal of the Fifth Schedule, the government now has the authority to impose any amount of levy on petroleum products without a legal ceiling.
The move has sparked concerns about the potential for increased fuel prices, especially in light of recent developments.
Earlier this month, instead of passing on the benefit of declining global oil prices to consumers, the government adjusted the rates by raising the petroleum levy.
Earlier in the day, in a separate development, National Electric Power Regulatory Authority (NEPRA) approved a major cut in the base tariff for the Electric Vehicle (EV) charging stations across the country.
The decision comes in response to a formal request submitted by the federal government.
NEPRA said that the base tariff for EV charging stations has been reduced from Rs45.55 per unit to Rs23.57 per unit.
The move provides substantial relief to the consumers for amount worth Rs21.98 per unit.
Additionally, NEPRA approved the removal of the capped margin of Rs24.44 per unit previously applicable to charging stations. From now on, the margin would be determined based on market dynamics.
NEPRA stated that the initiative is part of the government’s efforts to promote electric vehicles and encourage the use of green energy.
The federal government had formally submitted the request to NEPRA and vowed to reduce the cost of charging infrastructure and provide affordable services to the consumers.
New petrol prices in Pakistan from April 16 as levy increased
