Government Raises Petrol Levy, Denying Public Expected Fuel Relief

Published On: January 22, 2026

The federal government has increased the petroleum levy on fuel products, effectively denying the public any relief despite declining international oil prices.

According to the official notification, the petrol levy has been raised by Rs 4.65 per litre, pushing the levy from Rs 79.62 to Rs 84.27 per litre. The move has sparked public concern as consumers were expecting a reduction in fuel prices.

Diesel Levy Also Increased

In addition to petrol, the government has also increased the diesel levy by 80 paisas per litre. Following the adjustment, the levy on diesel now stands at Rs 76.21 per litre, up from Rs 75.41.

Industry experts say the hike has eliminated any possibility of fuel price reduction for consumers.

Experts Say Petrol Prices Could Have Dropped

According to energy analysts, had the government not increased the levy, petrol prices could have been reduced by up to Rs 4.50 per litre. Instead, the increased taxation has absorbed the potential relief, keeping prices artificially high.

Fuel Prices to Remain Unchanged Till January 31

Despite the levy hike, the government has decided to keep petrol and diesel prices unchanged until January 31.

Petrol price: Rs 253.17 per litre
Diesel price: Rs 257.08 per litre

The decision has intensified criticism as rising fuel costs directly impact transport fares, food prices, and overall inflation, placing additional burden on households already struggling with high living expenses.