The decision effectively blocks a possible reduction of around Rs10 per litre in petrol and diesel prices for the second half of April 2025.
No Relief on Petrol Price in Pakistan as Govt Raises Levy to Rs80 Per Litre. Pakistan’s federal government has increased the levy on petrol from Rs70 to Rs80 per litre with an amendment to the Petroleum Levy Ordinance 1961.
As Pakistanis were expecting a major cut in petrol and diesel prices, there was no announcement from the government in the fortnightly review, as Prime Minister Shehbaz announced to use funds to support projects in Balochistan.
The decision effectively blocks a possible reduction of around Rs10 per litre in petrol and diesel prices for the second half of April 2025. The amendment was necessary to prevent price adjustments that could have led to increased consumption, higher carbon emissions and further pressure on foreign exchange reserves.
Local prices are set to remain unchanged despite a drop of around $6 per barrel of petrol and $5 per barrel of diesel in the international market over the past two weeks. The ex-depot price of petrol will remain at Rs 254.63 per litre while that of high-speed diesel (HSD) will remain at Rs 258.64 per litre.
The additional revenue from the levy raised will be channelled towards road construction projects in Sindh and Balochistan, reportedly to shore up political support for coalition partners.
Under the latest understanding with the International Monetary Fund (IMF), the government planned to introduce a carbon levy of Rs 5 per litre from July 1.
Currently, the combined tax on petrol and diesel is around Rs 96-97 per litre, affecting millions of middle and low-income households who rely on small cars, motorcycles and rickshaws for daily transport.
