ISLAMABAD – Pakistani government jacked up petroleum levy by Rs24.74 per litre, reducing the impact of recent cuts in fuel prices.
Although international oil trends have led to a decrease in base petrol rates, the higher levy has limited the relief for consumers, and therefore the overall benefit of fuel prices has only partially reached inflation-weary masses.
According to the latest official notification, the ex-depot petrol price has been reduced by Rs4 per litre, bringing it down to Rs377.78 per litre. Meanwhile, the price of high-speed diesel remains unchanged at Rs380.78 per litre. This marks the fourth consecutive cut in petrol prices, with cumulative reductions over recent weeks reaching around Rs37 per litre.
The relief is being heavily offset by tax adjustments. The petroleum levy on petrol has surged from Rs91.34 to Rs116.08 per litre, raising concerns that consumers are not fully benefiting from global market trends.
In contrast, the levy on high-speed diesel has been slashed by Rs24.34 per litre, falling from Rs68.93 to Rs44.59 per litre, while the kerosene levy remains unchanged at Rs20.36 per litre.
Despite downward movement in base fuel prices, the overall impact on consumers remains mixed. Kerosene has actually become more expensive, with its retail price rising by Rs8.70 per litre to Rs280.70 per litre.
The total tax burden on petrol already stands at around Rs125 per litre, including multiple duties and climate-related charges, making it a major revenue stream for the government.
