Petrol Levy hits record Rs80/Litre amid Fuel Price Hike in Pakistan | CVHD

ISLAMABAD – The government of Pakistan increased petrol and diesel prices by tweaking Petroleum Levy instead of passing on relief to consumers, who are paying the most for fuel in the region.

Under revised prices, the ex-depot price of petrol has been increased by Rs13.18 per litre, taking it from Rs. 297.53 to Rs. 310.71 per litre. The price of High-Speed Diesel (HSD) has also been raised by Rs. 13.80 per litre.

The surge was notified as government increased Petroleum Levy on petrol by Rs9.64 per litre, pushing it from Rs70.36 to the budgeted ceiling of Rs80 per litre. The levy on diesel remains unchanged at Rs70.82 per litre.

Petroleum Levy

Petrol Price in Pakistan

The decision is expected to help government revenues. Based on estimated daily petrol consumption of 20 million litres, the additional Rs. 9.64 per litre levy could generate around Rs. 192.8 million every day, translating into nearly Rs. 5.8 billion each month and close to Rs. 70 billion annually, depending on actual fuel sales.

Petroleum Levy remains government’s largest non-tax revenue sources and plays a central role in achieving fiscal targets agreed under the current budget framework. While the additional revenue may help narrow the fiscal deficit and support the national exchequer, consumers are unlikely to see any immediate benefit.

The impact of latest increase will extend far beyond filling stations. Higher fuel prices typically push up transportation costs, freight rates, industrial production expenses and the prices of essential goods, adding fresh inflationary pressure on households already grappling with a high cost of living.

Oil and Gas Regulatory Authority (OGRA) issued an official notification implementing the revised petroleum pricing under the Petroleum Products (Petroleum Levy) Rules, 1967, following directives from the Ministry of Energy. The notification also revised the pricing structure for kerosene oil, setting the prescribed price at Rs. 234.06 per litre and the maximum ex-depot sale price at Rs. 242.33 per litre, effective July 11, 2026.

OGRA said the revised prescribed price includes the ex-refinery or import parity price, Petroleum Levy, dealer margin and distributor margin. The authority said the maximum ex-depot price applies to 23 designated locations served by Oil Marketing Companies (OMCs), while secondary freight charges may be applied for deliveries beyond those locations in accordance with company policy.

Petrol Price increased by Rs13.18 Per Litre from July 11