ISLAMABAD – The Pakistani government has increased the petroleum levy by Rs 24.74 per litre, reducing the impact of the recent drop in fuel prices.

Although international oil trends have reduced core petrol prices, the high levy has limited the relief for consumers, and hence the overall benefit in fuel prices has only partially passed on to the inflation-stressed public.

According to the latest government notification, the price of ex-depot petrol has been reduced by Rs 4 per litre, bringing it to Rs 377.78 per litre. Meanwhile, the price of high speed diesel remains at Rs 380.78 per litre. This marks the fourth consecutive drop in petrol prices, with the overall decline reaching around Rs 37 per liter in recent weeks.

Relief is being heavily loaded by tax adjustments. The petroleum levy on petrol has increased from Rs 91.34 to Rs 116.08 per litre, raising concerns that consumers are not fully benefiting from global market trends.

In contrast, the levy on high-speed diesel has been reduced by Rs 24.34 per litre, from Rs 68.93 to Rs 44.59 per litre, while the kerosene levy remains at Rs 20.36 per litre.

Despite the drop in core fuel prices, the overall impact on consumers is mixed. Kerosene has actually become more expensive, with its retail price increasing by Rs 8.70 per liter to Rs 280.70 per litre.

The total tax burden on petrol is already around Rs 125 per litre, including multiple duties and climate charges, making it a major revenue stream for the government.

Pakistan has reduced the price of petrol by Rs 4 per litre