ISLAMABAD: Pakistan has increased fuel prices by up to Rs7.32 per litre for the remainder of February, citing fluctuations in international oil markets, the petroleum division said.
In a late-night notification on Sunday, the government raised the ex-depot price of high-speed diesel (HSD) by Rs7.32, or 2.7 percent, to Rs275.70 per litre, up from Rs268.38.
Petrol prices were increased by Rs5 per litre, or around 2 percent, to Rs258.17 per litre from Rs253.17.
The petroleum division said the revision was made in line with movements in global oil prices and recommendations from the Oil and Gas Regulatory Authority (Ogra).
Diesel is widely used in heavy transport, agriculture, and railways, and is considered inflationary as it affects the cost of transporting goods, including food items. Petrol is primarily consumed by private vehicles, motorcycles, and rickshaws, directly impacting household budgets, particularly among middle- and lower-income groups.
Despite a zero general sales tax (GST) on petroleum products, the government continues to impose a petroleum levy of Rs 79 per litre on diesel and Rs 87 per litre on petrol and high-octane fuels. The levy includes a Rs2.50 per litre climate support charge.
In addition, customs duties of around Rs17-18 per litre are applied on both petrol and diesel, along with distribution and dealer margins of about Rs17 per litre.
Petrol and diesel remain key revenue sources for the government, with combined monthly sales averaging between 700,000 and 800,000 tonnes. By contrast, kerosene demand stands at about 10,000 tonnes per month, reports the Pakistan media.
The government collected approximately Rs1.161 trillion through the petroleum levy in fiscal year 2024-25 and expects revenues to rise by about 27 percent to Rs1.470 trillion in the current fiscal year.
