ISLAMABAD – Many Pakistanis were hoping for cheaper fuel this month, but the government has instead raised the petroleum levy from Rs70 to Rs80 per litre, blocking a potential price cut.
The price of petrol and diesel remains unchanged, even though global oil prices have dropped in the last two weeks. Petrol is still Rs254.63 per litre and high-speed diesel stays at Rs258.64 per litre.
This decision came after the government amended the Petroleum Levy Ordinance 1961. Officials say the change was necessary to avoid increased fuel consumption, carbon emissions, and pressure on Pakistan’s foreign exchange reserves.
Reports say the extra money collected from the levy will go toward road construction projects in Sindh and Balochistan, likely to support political allies.
Earlier, a nearly Rs10/litre reduction in fuel prices was expected, but Prime Minister Shehbaz Sharif announced that funds would instead be used for development projects in Balochistan.
Additionally, the government plans to introduce a Rs5/litre carbon tax starting from July 1, in agreement with the IMF.
Right now, total taxes on petrol and diesel are around Rs96–97 per litre, which hits the middle- and lower-income groups the hardest—especially those using motorcycles, rickshaws, and small cars for daily transport.