ISLAMABAD: The federal government has increased the price of petrol by Rs5.36 per litre and high-speed diesel (HSD) by Rs11.37 per litre for the upcoming fortnight, taking the new prices to Rs272.15 for petrol and Rs284.35 for HSD.
The Finance Division, in a press release issued Tuesday, said the hike was based on recommendations from the Oil and Gas Regulatory Authority (Ogra) and other relevant ministries. Prices of kerosene and light diesel oil remain unchanged.
Petrol, widely used by motorcycles, rickshaws, and private vehicles, directly affects household budgets, especially those of middle- and lower-income groups. Diesel, powering public transport, agriculture machinery, and goods movement, is considered inflationary due to its impact on food and commodity prices.
Despite zero general sales tax (GST), the government is collecting nearly Rs98 per litre on both fuels through multiple levies. This includes a petroleum development levy (PDL) of Rs78.02 on petrol and Rs77.01 on diesel, a Rs2.25 climate support levy, and customs duties ranging from Rs20–21 per litre.
Oil marketing companies and dealers also earn about Rs17 per litre in combined margins. Monthly consumption remains high, with petrol and diesel sales ranging between 700,000 and 800,000 tonnes.
In FY24, the government raised Rs1.161 trillion through the petroleum levy and targets Rs1.470 trillion for FY25 — a 27% increase — underscoring the sector’s critical role in revenue generation.
Story by Tahir Sherani
