Methods and systems are provided for applying metering and rate-limiting in a virtual router environment and supporting a hierarchy of metering/rate-limiting contexts per packet flow. According to one embodiment, multiple first level metering options and multiple second level metering options associated with a hierarchy of metering levels are provided. A virtual routing engine receives packets associated with a first packet flow and packets associated with a second packet flow. The virtual routing engine performs a first type of metering of the first level metering options on the packets associated with the first packet flow using a first metering control block (MCB) and performs a second type of metering of the second level metering options on the packets associated with the first packet flow and the packets associated with the second flow using a second MCB.