The federal government has announced a major revision in petroleum prices and levy structure, pushing petrol prices close to Rs400 per litre while introducing a fresh levy on high-speed diesel. The decision, effective from May 1, is expected to increase transportation expenses and add further inflationary pressure across the country. The revised pricing policy comes amid rising international oil prices and growing fiscal challenges.
According to the latest notification, petrol prices have been increased by Rs6.51 per litre, taking the new official rate to Rs399.86 per litre. High-speed diesel prices have seen an even bigger jump of Rs19.39 per litre, with the revised price fixed at Rs399.58 per litre. The sharp rise in fuel costs is likely to affect millions of consumers, transporters, and businesses nationwide.
The government has simultaneously introduced a new petroleum levy of Rs28.69 per litre on high-speed diesel, which previously carried no levy. Officials said the new taxation structure is aimed at increasing revenue collection and managing economic pressures linked to energy imports. However, economists warn that the levy could heavily impact agriculture, public transport, and goods transportation sectors that rely heavily on diesel fuel.
Under the revised structure, the petroleum levy on petrol has been slightly reduced by Rs3.88 per litre. The new levy on petrol now stands at Rs103.50 per litre compared to the earlier Rs107.38 per litre. Despite this minor reduction, consumers will still face significantly higher fuel prices because of the latest increase in base petroleum rates announced by the government.
Economic analysts believe the new fuel pricing policy may trigger another wave of inflation in Pakistan. Transportation costs are expected to rise immediately, which could increase prices of food items, consumer goods, and industrial products in coming weeks. Farmers may also face higher operational expenses because diesel powers tractors, tube wells, and transportation of agricultural produce across the country.
Public reaction to the increase has been strong, with many citizens expressing concern over continuously rising living costs. Experts say international crude oil volatility and Pakistan’s dependence on imported fuel continue to place pressure on domestic petroleum pricing. They further warned that if global oil prices remain elevated, additional fuel adjustments could be announced in the coming months.
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