Petroleum Levy Enhanced to Rs 80 per Liter in 2024-25 Budget

Petroleum Levy Enhanced to Rs 80 per Liter in 2024-25 Budget – The government on Wednesday unveiled the budget for the fiscal year 2024-25, introducing an enhanced petroleum levy. The maximum rate of this levy has been increased to Rs 80 per liter on various petroleum products.

According to the budget documents, the government has specifically raised the petroleum levy on high-speed diesel oil to a maximum rate of Rs 80 per liter, with a minimum rate set at Rs 60 per liter. This adjustment reflects the government’s efforts to generate additional revenue while maintaining a balanced approach to pricing.

Similarly, the maximum petroleum levy on petrol has been set at Rs 80 per liter, with a minimum rate of Rs 60 per liter. These changes are designed to standardize the taxation framework across different types of fuel, ensuring a more consistent revenue stream from the petroleum sector.

For kerosene oil, the petroleum levy has been established at Rs 50 per liter for the upcoming fiscal year. This rate aims to balance the need for revenue with the affordability of kerosene, which is widely used in various domestic applications, especially in rural areas.

Meanwhile, the petroleum levy on light diesel oil has been set at a maximum value of Rs 75 per liter, with a minimum rate of Rs 50 per liter. This measure is part of the broader strategy to align the taxation of different fuel types while considering their respective market demands and consumption patterns.

The enhancement of the petroleum levy is expected to have significant implications for consumers and the economy. While the increased levy will contribute to the government’s revenue, it may also lead to higher fuel prices, affecting transportation costs and potentially influencing inflation rates.

The government’s decision to adjust the petroleum levy underscores its commitment to fiscal responsibility and the need to bolster national finances. By setting a structured range for the levy, the government aims to create a predictable and transparent pricing mechanism for petroleum products.

As the fiscal year 2024-25 progresses, stakeholders will closely monitor the impact of these changes on the economy and household budgets. The revised petroleum levy rates are a critical component of the government’s broader economic strategy, reflecting its priorities in revenue generation and economic stabilization.