ISLAMABAD: The federal government increased petrol prices by Rs5.36 per litre and high-speed diesel (HSD) by Rs11.37 per litre on Tuesday.
According to a press release from the Finance Division, the new prices follow recommendations from OGRA and relevant ministries. The new petrol rate is Rs272.15 per litre, while HSD now costs Rs284.35 per litre.
There were no changes announced for kerosene oil or light diesel oil, the statement added.
Forecasted Increases Match Final Price Changes
Sources revealed that the ex-depot price of petrol was projected to rise by 2%, reaching Rs272.04 per litre. Meanwhile, HSD was expected to climb by 2.5%, touching Rs279.48 per litre.
Fuel Costs Hit Low-Income Households the Hardest
Petrol, heavily used by motorcycles, rickshaws, and private cars, directly affects the budgets of middle- and lower-income households.
Diesel fuels heavy transport, tractors, and trains, making it a key driver of food and commodity inflation. Transporters have already begun increasing fares in response to the latest hike.
Taxes and Levies Keep Fuel Prices High
Although the government collects zero GST on petroleum products, it still levies nearly Rs98 per litre on both petrol and diesel.
This includes:
- Petroleum Development Levy (PDL): Rs78.02 on petrol, Rs77.01 on diesel.
- Climate Support Levy (CSL): Rs2.25 per litre.
- Customs duty: Rs20–21 per litre, applied to both imported and locally refined fuel.
Distributors, Government Share in Profits
Oil marketing companies and fuel dealers earn about Rs17 per litre combined in distribution and retail margins.
Petrol and diesel dominate Pakistan’s fuel consumption, with monthly sales ranging between 700,000 and 800,000 tonnes. In comparison, kerosene sales barely reach 10,000 tonnes monthly.
Petroleum Levy Revenue Targets Increase in FY25
In FY2023-24, the government collected Rs1.161 trillion through petroleum levies. For FY2024-25, it plans to boost collections by 27%, targeting Rs1.470 trillion.
Despite no GST, petroleum products remain a major revenue source for the government.
