ISLAMABAD: The federal government has increased the prices of petroleum products, raising petrol by Rs13.18 per litre and high-speed diesel (HSD) by Rs13.80 per litre, effective July 12.
According to a notification issued by the Petroleum Division, the new price of petrol has been set at Rs310.71 per litre, while HSD will now cost Rs323.30 per litre.
Petrol is primarily used by private vehicles, motorcycles and rickshaws, making the increase particularly significant for middle- and lower-income households. Diesel, widely consumed by heavy transport, agriculture, power generation and industrial sectors, is expected to increase transportation and logistics costs, potentially adding to inflationary pressures.
The latest revision comes as the government continues to implement fiscal measures agreed under the International Monetary Fund (IMF) programme. From July 1, the climate support levy was doubled to Rs5 per litre, while the petroleum levy was adjusted accordingly.
The petroleum levy on high-speed diesel now stands at around Rs80 per litre, while petrol carries a petroleum levy of approximately Rs70 per litre, in addition to the Rs5 per litre climate support levy.
Consumers also pay significant indirect taxes on fuel. The government currently collects about Rs101 per litre on diesel, including customs duty, petroleum levy, climate support levy and inland freight equalisation margin. On petrol, the total tax burden is approximately Rs95 per litre, including customs duty, petroleum levy and the climate levy.
In addition, the government imposes a petroleum levy of around Rs21 per litre on kerosene and Rs16 per litre on light diesel oil.
Petrol and high-speed diesel remain the country’s largest petroleum revenue sources, with combined monthly sales ranging between 700,000 and 800,000 tonnes, compared to only around 10,000 tonnes of monthly kerosene consumption.
