The federal government has increased the petroleum levy on petrol and high-speed diesel, absorbing the benefit of lower international oil prices and keeping domestic fuel prices unchanged.
According to a notification issued by the Petroleum Division, petrol will continue to be sold at Rs299.50 per litre, while high-speed diesel will remain priced at Rs311.47 per litre from June 27 until further orders.
The decision comes despite a notable decline in global oil prices following recent volatility linked to the Iran-Israel conflict, which had earlier pushed crude prices higher over concerns about potential supply disruptions.
Pricing calculations shared by Topline Research indicate that the ex-refinery price of high-speed diesel fell by Rs6.57 per litre, decreasing from Rs217.09 to Rs210.52 per litre.
However, the government increased the petroleum levy on high-speed diesel by the same amount, raising it from Rs72.97 to Rs79.54 per litre. The increase fully offset the reduction in ex-refinery costs, resulting in no change to the retail diesel price of Rs311.47 per litre.
The revised levy means consumers will not benefit from the recent decline in international oil prices, as the savings have been absorbed through higher government taxation on petroleum products.
The government has maintained that petroleum pricing decisions are made while balancing fiscal requirements, revenue targets, and broader economic considerations.
Also read: Petrol Price Relief Expected in Pakistan Amid Global Oil Price Drop
