ISLAMABAD – Pakistani federal government raised levy on petrol from Rs70 to Rs80 per litre, with amendment in Petroleum Levy Ordinance 1961.
As Pakistanis were expecting big cut in Petrol, Diesel rates, there was no announcement from government in fortnight review, as Prime Minister Shehbaz announced using funds to support Balochistan projects.
The decision effectively blocks potential reduction of nearly Rs10 per litre in petrol and diesel prices for second half of April 2025. The amendment was necessary to prevent price adjustments that could have led to increased consumption, higher carbon emissions, and further strain on foreign exchange reserves.
Despite a decline of approximately $6 per barrel for petrol and $5 for diesel in the international market over the past two weeks, domestic prices will remain unchanged. The ex-depot price of petrol will stay at Rs254.63 per litre, while high-speed diesel (HSD) will remain at Rs258.64 per litre.
The additional revenue from the raised levy will be directed towards road construction projects in Sindh and Balochistan, reportedly to solidify political support from coalition partners.
Under latest understanding with International Monetary Fund (IMF), the government planned introducing a Rs5 per litre carbon levy starting July 1.
Currently, combined taxes on petrol and diesel stand at around Rs96–97 per litre, affecting millions of middle- and lower-income households who rely on small vehicles, motorcycles, and rickshaws for daily transportation.
Pakistan jacks up Petroleum Levy to Rs70 per Liter to bridge tax shortfalls
