Govt raises petrol by Rs5, diesel by Rs7.32 per litre

The federal government has increased the prices of petrol and high-speed diesel by Rs5 and Rs7.32 per litre, respectively, for the current fortnight ending February 28, 2026, according to a late-night notification issued by the Petroleum Division. 

The government said that the revision was based on movements in international market prices and recommendations of the Oil and Gas Regulatory Authority. Following the increase, the ex-depot price of high-speed diesel has risen from Rs268.38 to Rs275.70 per litre, a 2.7% increase. Petrol has been raised from Rs253.17 to Rs258.17 per litre, reflecting a 2% hike.

The notification further stated that the revised prices take effect immediately from February 16 and will remain in force for the next fortnight.

High-speed diesel is widely used in heavy transport, public buses, trucks, trains and agricultural machinery, and is considered inflation-sensitive due to its impact on freight and food prices. Petrol is primarily used in private vehicles, motorcycles and rickshaws, directly affecting household transport costs.

Although general sales tax on petroleum products remains zero, the government is charging a petroleum levy of Rs79 per litre on diesel and Rs87 per litre on petrol and high-octane products. The levy includes a Rs2.50 per litre climate support levy.

In addition, around Rs17 to Rs18 per litre is charged as customs duty on petrol and diesel, regardless of whether the products are locally produced or imported. Distribution and sales margins of about Rs17 per litre are paid to oil marketing companies and dealers.

Petrol and diesel account for monthly sales of around 700,000 to 800,000 tonnes, compared to about 10,000 tonnes for kerosene. The government collected approximately Rs1.161 trillion through petroleum levy in FY2025 and has projected collections of around Rs1.470 trillion in the current fiscal year.