Petrol levy reaches Rs 80 per liter after hike in fuel prices in Pakistan
ISLAMABAD – The government of Pakistan has changed the petroleum levy, increasing the prices of petrol and diesel instead of providing relief to consumers, who are paying the highest fuel prices in the region.
Under the revised prices, the ex-depot price of petrol has been increased by Rs 13 18 paise per litre, bringing it to Rs 1 50 paise per litre. The price of High Speed Diesel (HSD) has also been increased by Rs.297.53 to Rs.310.71 per liter. 13.80 per litre
The hike was announced after the government hiked the petroleum levy on petrol by Rs 9.64 per litre, from Rs 70.36 to the budget limit of Rs 80 per litre. The levy on diesel remains at Rs 70.82 per litre.
Petroleum Levy
| Product | Previous levy | The new levy | Change |
| Petrol (Motor Spirit) | 70.36 | 80.00 | +9.64 |
| High speed diesel | 70.82 | 70.82 | No change. |
Petrol Price in Pakistan
| Item | figure |
| Petrol price | Rs.310.71 per litre |
| Diesel price | Rs.323.30 per litre |
| Increase in petrol price | Rs 13.18/litre |
| Diesel price hike | Rs.13.80 per litre |
| Petrol Levy | Rs.80.00 per litre |
| Diesel disc | Rs 70.82 per litre |
| The price of kerosene | Rs 242.33 per litre |
This decision is expected to help the government revenue. Based on an estimated daily consumption of 20 million liters of petrol, an additional Rs. 9.64 per liter levy could generate around Rs. 192.8 million per day, translating to about Rs. 5.8 billion per month and about Rs. 70 billion annually, depending on actual fuel sales.
Petroleum levy is the largest non-tax revenue source of the government and plays a central role in achieving the fiscal targets set under the current budget framework. While the additional revenue may help reduce the fiscal deficit and support national coffers, consumers are unlikely to see any immediate benefits.
The latest additions will have an impact beyond filling stations. Higher fuel prices typically increase transportation costs, freight rates, industrial production costs and the prices of essential goods, adding fresh inflationary pressure to households already struggling with a high cost of living.
The Oil and Gas Regulatory Authority (OGRA) has issued an official notification for implementation of revised petroleum prices under the Petroleum Products (Petroleum Levy) Rules, 1967 following the directions of the Ministry of Energy. The notification also revised the price structure of kerosene, with a fixed price of Rs.10. 234.06 per liter and a maximum ex-depot sale price of Rs. 242.33 per litre, effective from 11 July 2026.
The revised fixed price includes ex-refinery or import parity price, petroleum levy, dealer margin and distributor margin, Ogra said. The authority said the maximum ex-depot price is applicable at 23 designated locations served by oil marketing companies (OMCs), while secondary freight charges may be applicable for shipments beyond these locations as per company policy.
From July 11, the price of petrol increased by Rs 13 18 paise per litre.
The post Petrol levy reached a record of Rs 80 per liter after the increase in fuel prices in Pakistan appeared first on Daily Pakistan English News.
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