Despite declining international oil prices, the federal government has raised the petroleum levy on petrol and diesel instead of providing relief through a price cut.
According to available documents, the petroleum levy on petrol has been increased by Rs8.02 per litre, taking the total levy to Rs78.02. Likewise, the levy on high-speed diesel has gone up by Rs7.01, now reaching Rs77.01 per litre.
Sources in the petroleum division said that without the hike in levies, petrol could have been cheaper by Rs8 and diesel by Rs7 per litre—benefits that consumers were expecting amid the downward trend in global oil markets.
The government, however, announced that petroleum prices will remain unchanged for the last 15 days of the ongoing month of April 2025. Petrol will continue to be sold at Rs254.63 per litre, while the price of high-speed diesel (HSD) will remain at Rs258.64 per litre.
The move comes at a time when global prices for petrol and HSD have fallen by around $6 and $5 per barrel, respectively, over the past two weeks. Despite this decline, the government has decided to retain the current price levels for both fuels.Â
Chairing a federal cabinet meeting in Islamabad, Prime Minister Shehbaz Sharif justified the move by stating that the government had chosen not to transfer the benefit of lower international fuel prices to consumers. Instead, the savings generated through increased levies would be used for infrastructure development in Balochistan.
As part of its agreement with the International Monetary Fund (IMF), the government has also committed to imposing a Rs 5 per litre carbon levy on petrol and diesel starting July 1, 2025, as part of the $1.3 billion Resilience and Sustainability Facility.
