ISLAMABAD – Inflation-weary Pakistanis are facing another staggering burden as petroleum levies have surged to a record Rs. 3.137 trillion in just two and a half years.
The current government’s regime started in March 2024, when petrol was priced at Rs279.75 per litre, while High-Speed Diesel (HSD) stood at Rs287.33 per litre. The subsequent period saw unprecedented volatility in the domestic fuel market.
Diesel prices surged by as much as Rs233.02 per litre, touching a record Rs520.35 per litre. Petrol also witnessed a massive increase of Rs178.66 per litre, climbing to an all-time high of Rs458.41 per litre amid the Middle East fuel crisis and disruption in international oil markets.
The surge in fuel prices was accompanied by a sharp rise in petroleum levy collections. The government collected Rs1,220 billion in petroleum levy during FY2024-25, while an additional Rs299.63 billion was collected during April-June 2024, according to official documents.
The levy haul grew even larger in the following financial year. Petroleum levy receipts jumped to Rs1,567 billion during FY2025-26, while the government separately collected more than Rs50 billion through the Climate Support Levy.
Despite the dramatic retreat from April surge, consumers continue to shoulder substantial government charges whenever they fill their tanks. As of September 2026, petrol was priced at around Rs350per litre, while Diesel was selling at Rs374.31 per litre.Both petrol and diesel carried an Rs80-per-litre petroleum levy, along with a further Rs5-per-litre Climate Support Levy.
The most dramatic price surge came during the April fuel crisis, when escalating tensions in the Middle East disrupted international oil markets and sent domestic petroleum prices soaring.
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