The Government of Pakistan has sharply increased the petroleum levy on petrol, raising it from Rs. 106 to Rs. 161 per litre, an increase of Rs. 55.
Following the revision, petrol prices have surged to Rs. 458.40 per litre. In contrast, the levy on high-speed diesel (HSD) has been largely removed, except for a Rs. 2.5 per litre carbon charge.
Petroleum Minister Ali Pervaiz Malik said the increase became necessary after Pakistan failed to secure approval from the International Monetary Fund for expanding fuel subsidies beyond the capped limit of Rs. 152 billion.
This marks the second major fuel price hike within a month, with cumulative increases reaching approximately 63 percent for petrol and 75 percent for diesel.
The announcement was made jointly by Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb through a pre-recorded statement, where they attributed the surge to rising global oil prices and supply disruptions linked to Iran’s closure of the Strait of Hormuz.
Other petroleum products have also seen significant increases. Kerosene oil has risen to Rs. 468 per litre, while light diesel oil is now priced at Rs. 395 per litre.
The latest hike is expected to intensify inflationary pressures, particularly affecting transportation, agriculture, and household energy costs across the country.
