The federal government on Tuesday increased petrol prices by Rs5.36 per litre and high-speed diesel (HSD) by Rs11.37 for the next fortnight, pushing the rates to Rs272.15 and Rs284.35 per litre, respectively.
Read More: Pakistan Raises Petrol Price Ahead of Eid, Lowers HSD Cost
According to a press release from the Finance Division, the revised rates are based on recommendations from the Oil and Gas Regulatory Authority (Ogra) and other relevant ministries. No changes were announced for kerosene or light diesel oil.
Sources had earlier projected an ex-depot price increase of around 2% for petrol and 2.5% for diesel, citing global market fluctuations and import costs.
The petrol hike is expected to hit middle- and low-income households hardest, as the fuel is widely used in motorcycles, rickshaws, and private vehicles. Diesel, essential for goods transport, agricultural machinery, and railways, is also highly inflationary—affecting food prices and logistics. Transporters had already begun raising fares in anticipation.
Soaring Levies Despite Zero GST: Although the government continues to maintain a zero GST policy on petroleum products, it is still collecting nearly Rs98 per litre in combined levies on both petrol and diesel. This includes:
- Rs78.02 PDL on petrol
- Rs77.01 PDL on diesel
- Rs2.25 per litre Climate Support Levy
- Rs20–21 per litre in customs duties on both imported and locally refined fuels
Oil marketing companies and dealers also earn about Rs17 per litre through distribution and retail margins.
Petrol and diesel remain the dominant fuels in Pakistan, with combined monthly consumption between 700,000 and 800,000 tonnes, compared to just 10,000 tonnes of kerosene.
Massive Revenue Target for FY25: In FY24, the government collected Rs1.161 trillion through the petroleum levy. For FY25, it aims to raise this figure by 27%, targeting a record Rs1.470 trillion — making fuel taxes a major revenue stream despite no GST.
