Fuel Price Hike: Pakistan Increases Petrol and Diesel Costs

The federal government has announced an increase in fuel prices, with petrol and high-speed diesel (HSD) seeing hikes for the upcoming fortnight.This adjustment reflects recommendations from the Oil and Gas Regulatory Authority (Ogra) and relevant ministries.

According to the Finance division, the new price for petrol is set at Rs272.15 per litre,and HSD will now cost Rs284.35 per litre. Prices for kerosene and light diesel oil remain unchanged.

the ex-depot price of petrol was projected to climb by approximately 2 percent, reaching Rs272.04 per litre. High-speed diesel was expected to experience a 2.5 percent increase, moving to around Rs279.48 per litre.

Petrol is a meaningful expense for many households, impacting daily commutes and transportation costs. Diesel, essential for heavy transport and agriculture, has a broader inflationary effect on food and other goods.

Even with zero general sales tax (GST) on petroleum products, the government collects significant levies. These include a petroleum progress levy (PDL) of Rs78.02 on petrol and Rs77.01 on diesel and HOBC, alongside a Rs2.25 per litre climate support levy (CSL). Imported and locally refined fuels also incur a customs duty of Rs20-21 per litre.

Oil marketing companies and dealers currently earn about Rs17 per litre as combined distribution and retail margins.

Petrol and diesel dominate fuel consumption, with monthly sales figures ranging from 700,000 to 800,000 tonnes. Kerosene sales are considerably lower, at approximately 10,000 tonnes per month.

The government collected Rs1.161 trillion through the petroleum levy in the fiscal year 2024. The target for the fiscal year 2025 is an increase of 27 percent, aiming for Rs1.470 trillion.

frequently Asked Questions

What are the new fuel prices?

The new price for petrol is Rs272.15 per litre, and for high-speed diesel (HSD), it is indeed Rs284.35 per litre.

What factors influenced this price adjustment?

The price hike is based on recommendations from Ogra and concerned ministries, reflecting global trends and domestic levies.

what are the total levies on petrol and diesel?

Despite zero GST, total levies include a petroleum development levy, a climate support levy, and customs duty, amounting to close to Rs98 per litre on both fuels.

What impact do these fuel price changes have on your daily life? Share your thoughts and experiences in the comments below.Let’s discuss how these adjustments affect us all.

What government measures are being considered to rationalize taxes on petroleum products like the PDL and GST?

Recent Petrol and Diesel Price Adjustments in Pakistan

Pakistan has recently experienced a significant increase in the prices of petrol and diesel, impacting consumers and businesses alike. These adjustments, announced on[InsertdateofActualIncrease-[InsertdateofActualIncrease-research needed], reflect a complex interplay of global oil market dynamics, currency fluctuations, and government taxation policies. Understanding these factors is crucial for navigating the current economic landscape.

Breakdown of New Fuel Prices

As of[InsertDateofActualIncrease-[InsertDateofActualIncrease-research needed], the revised prices are as follows:

Petrol: [InsertNewPetrolPriceperLitre-[InsertNewPetrolPriceperLitre-research needed]

High-Speed Diesel (HSD): [InsertNewDieselpriceperLitre-[InsertNewDieselpriceperLitre-research needed]

Kerosene Oil: [InsertNewKerosenePriceperLitre-[InsertNewKerosenePriceperLitre-research needed]

Light Diesel Oil (LDO): [InsertNewLDOPriceperLitre-[InsertNewLDOPriceperLitre-research needed]

these prices represent an increase of[InsertPercentageIncreaseforPetrol-[InsertPercentageIncreaseforPetrol-research needed]for petrol and[InsertPercentageIncreaseforDiesel-[InsertPercentageIncreaseforDiesel-research needed]for diesel compared to the previous rates.

Factors Contributing to the Price Hike

Several key factors have converged to drive up fuel costs in Pakistan:

Global Oil Prices: International crude oil benchmarks, such as Brent Crude, have been trending upwards due to[Specifyreasons-[Specifyreasons-research needed – e.g.,geopolitical tensions,increased demand,OPEC+ production cuts].

Rupee Devaluation: The Pakistani Rupee (PKR) has experienced significant devaluation against the US Dollar (USD) in recent months. As oil is priced in USD, a weaker PKR translates to higher import costs. This impacts the landed cost of petroleum products.

Government Levies & Taxes: The Pakistani government imposes various taxes and levies on petroleum products, including the Petroleum Advancement levy (PDL) and General Sales Tax (GST). Adjustments to these taxes directly influence the final price at the pump.

Exchange Rate Volatility: Fluctuations in the exchange rate create uncertainty and contribute to price instability.

Demand & Supply Dynamics: Seasonal increases in demand, particularly during harvest seasons requiring agricultural machinery, can also exert upward pressure on prices.

Impact on Key Sectors

The fuel price hike is expected to have a ripple effect across various sectors of the Pakistani economy:

Transportation: Increased fuel costs will directly impact transportation expenses for both public and private vehicles, potentially leading to higher fares and freight charges.

agriculture: Farmers rely heavily on diesel-powered machinery for irrigation and harvesting. Higher diesel prices will increase production costs, potentially leading to higher food prices.

Manufacturing: Many manufacturing industries depend on fuel for power generation and transportation of raw materials and finished goods. Increased fuel costs will raise production expenses and potentially impact competitiveness.

Inflation: Higher fuel prices contribute to overall inflation, as transportation costs are embedded in the prices of most goods and services.

Power Generation: While Pakistan is diversifying its energy mix, a significant portion of electricity is still generated using fuel oil.Higher fuel prices will likely translate to increased electricity tariffs.

Regional Fuel Price Comparison (April 2025 Data – use as a reference point, update with current data)

While direct comparison is complex due to varying tax structures, here’s a snapshot of fuel prices in neighboring countries as of April 2025 (based on available data – research needed for current figures):

India: Petrol -[InsertPrice-[InsertPrice-research needed], Diesel -[InsertPrice-[InsertPrice-research needed]

Malaysia: RON97 – RM3.18/litre, Diesel – RM2.88/litre (as of April 16, 2025 – cite source: paultan.org)

Afghanistan: Petrol -[InsertPrice-[InsertPrice-research needed],Diesel -[InsertPrice-[InsertPrice-research needed]

Iran: Petrol -[InsertPrice-[InsertPrice-research needed],diesel -[Insertprice-[Insertprice-research needed]

Note: Prices are approximate and subject to change.

Government Response and Potential Mitigation Strategies

The Pakistani government has[DescribegovernmentActions-[DescribegovernmentActions-research needed – e.g., considered reducing taxes, providing targeted subsidies, exploring choice energy sources]. Potential mitigation strategies include:

Rationalizing Taxes: Re-evaluating the PDL and GST on petroleum products to provide some relief to consumers.

Strengthening the Rupee: Implementing policies to stabilize the PKR and reduce its devaluation against the USD.

Promoting Energy Efficiency: Encouraging the adoption of energy-efficient technologies and practices across all sectors.

Investing in Renewable Energy: Accelerating the development of renewable energy sources, such as solar and wind power, to reduce reliance on imported fossil fuels.

* Improving Public Transportation: Investing in efficient and affordable public transportation systems to reduce individual vehicle usage.