ISLAMABAD: Pakistan’s federal government on Tuesday increased the prices of petrol and high-speed diesel (HSD) for the next fortnight, effective from July 16. The price of petrol has been raised by Rs5.36 per litre to Rs272.15, while the price of HSD has gone up by Rs11.37 per litre to Rs284.35.
According to a notification issued by the Finance Division, the price revision was made on the recommendations of the Oil and Gas Regulatory Authority (OGRA) and other relevant ministries.
The revised prices will remain in effect until the next review due at the end of July.
In its notification, the Finance Division said, “The government has revised the prices of petroleum products for the fortnight starting July 16, 2025, based on the recommendations of OGRA and the relevant ministries.”
No changes were announced in the prices of kerosene oil or light diesel oil in the notification.
This marks the second consecutive increase in fuel prices. In the last fortnightly review, petrol was increased by Rs8.36 per litre to Rs266.79, and diesel by Rs10.39 to Rs272.98 per litre.
Petrol, widely used in motorcycles, rickshaws, and private vehicles, directly impacts the budgets of middle- and lower-income households.
Diesel, primarily consumed by heavy transport, agricultural machinery, and railways, has broader inflationary effects due to its role in moving goods across the country.
Despite zero general sales tax (GST) on petroleum products, the government is currently collecting nearly Rs98 per litre in total levies on both petrol and diesel.
This includes a petroleum development levy (PDL) of Rs78.02 on petrol and Rs77.01 on diesel, alongside a climate support levy (CSL) of Rs2.25 per litre.
A customs duty of Rs20 to Rs21 per litre is also applied, whether the fuel is imported or locally refined.
Oil marketing companies and petroleum dealers are earning approximately Rs17 per litre in combined distribution and retail margins.
Petrol and diesel continue to dominate domestic fuel consumption, with monthly sales ranging between 700,000 to 800,000 tonnes, compared to just 10,000 tonnes for kerosene.
According to Ministry of Finance data, the government collected Rs1.161 trillion through the petroleum levy in the fiscal year 2023–24 and aims to increase this collection by 27 percent to Rs1.470 trillion in FY2024–25.
Petroleum products remain a key revenue source for the government despite zero GST, with levies forming a significant part of the federal budget’s non-tax revenue.
