ISLAMABAD: Petroleum product prices are expected to rise by Rs4.50 to Rs7 per litre for the upcoming fortnight ending March 15, amid a slight upward trend in international crude markets driven by regional tensions.
Official sources indicated that benchmark crude prices have firmed up during the week, prompting a likely revision in domestic fuel rates effective February 28. Based on existing tax structures, ex-depot prices are estimated to increase by approximately Rs4.50 per litre for petrol, Rs4.70 for high-speed diesel (HSD), Rs7 for light diesel oil (LDO), and Rs5 for kerosene, subject to final calculations.
Currently, petrol is priced at Rs258.17 per litre at the ex-depot level, though retail prices exceed Rs259.30 per litre. HSD stands at Rs275.70 ex-depot, while retail rates hover above Rs277 per litre. Kerosene and LDO are officially priced at Rs180.53 and Rs161.72 per litre, respectively, though kerosene is reportedly selling at over Rs300 per litre in the open market.
The government continues to levy substantial taxes on petroleum products. Combined with customs duty, petroleum levy, and climate support levy, total taxation amounts to approximately Rs105 per litre on petrol and Rs98 on HSD. Additionally, around Rs17–18 per litre is charged as customs duty, while distribution and dealer margins account for roughly Rs17 per litre.
Petrol remains primarily used in private vehicles, motorcycles, and rickshaws, directly impacting middle- and lower-middle-income households. HSD, widely consumed in heavy transport, agriculture machinery, and railways, is considered inflationary due to its effect on freight costs and food prices.
Petrol and HSD are major revenue contributors, with combined monthly sales averaging 700,000–800,000 tonnes, compared to just 10,000 tonnes for kerosene. In FY2025, the government collected approximately Rs1.161 trillion through the petroleum levy and is targeting around Rs1.470 trillion in the current fiscal year, reflecting a projected 27 percent increase.
Story by Khaleeq Kiani
