The government has sharply increased the petrol levy to a record level, triggering a fresh wave of fuel price hikes.
The federal government has increased the petroleum levy on petrol by Rs55 per liter, taking it to a record Rs160.61 per liter. Earlier, the levy stood at around Rs105–106 per liter.
This increase is part of efforts to meet the petroleum levy target of Rs1,468 billion for the current fiscal year, with further growth in non-tax revenue expected.
According to official documents, the ex-refinery price of petrol is Rs271.27 per liter. On top of this, a levy of Rs161.61 per liter is imposed. Additionally, a carbon levy of Rs2.50 and IFEM charges of around Rs7.50–7.52 per liter are included.
Oil Marketing Companies (OMCs) receive a margin of Rs7.87 per liter, while dealers’ margin stands at Rs8.64 per liter. Notably, the sales tax rate on petrol remains zero.
Diesel pricing and tax structure
The ex-refinery price of high-speed diesel (HSD) as of April 3 is Rs496.97 per liter. Diesel is subject to a carbon levy of Rs2.50, while its petroleum levy has been reduced from Rs55 to zero instead of being increased.
IFEM charges on diesel are Rs4.37 per liter, with OMC and dealer margins remaining the same as petrol at Rs7.87 and Rs8.64 respectively.
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The government has also outlined levies on other fuels. The levy on HOBC stands at Rs305.37 per liter, while kerosene carries a levy of Rs20.36 per liter. Light diesel oil is subject to a levy of Rs15.84 per liter.
Kerosene oil price increased
Kerosene oil prices have also been raised following an OGRA notification. The price has increased by Rs34.8 per liter, moving up from Rs433.40 to Rs467.48 per liter, adding to the burden on consumers.
Jet fuel price rises for sixth time
In Karachi, jet fuel used in commercial flights has seen another increase — the sixth within a single month. The price has been raised by Rs40 per liter, reaching a new record of Rs517.17 per liter across the country.
Since March 1, jet fuel prices have surged by a total of Rs329.17 per liter. At the start of March, jet fuel was priced at Rs288 per liter, highlighting the rapid escalation in aviation fuel costs.
The continued rise in jet fuel prices is likely to push airlines to increase fares for both domestic and international flights. This could further burden passengers already dealing with rising fuel and transportation costs.
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