Petrol, Diesel Prices Frozen as Govt Increases Levies

News Desk 

Islamabad: The federal government on Friday increased the petroleum levy (PL) on petrol and High Octane Blending Component (HOBC) by Rs4.62 per litre, while raising the levy on high-speed diesel (HSD) by Re0.80, denying consumers any immediate relief despite declining international oil prices.

The decision coincided with the government’s move to keep fuel prices unchanged for the next fortnight, effectively passing on the burden to consumers through higher levies rather than price reductions.

With the latest increase, the total petroleum levy on petrol and HOBC has risen from Rs79.62 to Rs84.27 per litre, while the levy on HSD has increased to Rs76.21 per litre from Rs75.41.

Read  More: https://thepenpk.com/pakistan-welcomes-new-year-with-rs10-cut-in-petrol-price/

In addition, the government continues to collect a Climate Support Levy (CSL) of Rs2.50 per litre on petrol, HSD and HOBC. Consumers of kerosene oil and light diesel oil are also paying petroleum levies of Rs20.36 and Rs15.84 per litre, respectively.

Fuel prices are further affected by the Inland Freight Equalisation Margin (IFEM), which currently stands at Rs8.97 per litre on petrol and Rs7.25 per litre on HSD.

According to industry analysts, the move will help the government maintain its revenue stream but continues to burden consumers and transporters with high fuel costs, despite room for price relief.

Separately, a notification issued by the Petroleum Division late Thursday confirmed that petrol and HSD prices would remain unchanged at Rs253.17 and Rs257.08 per litre, respectively, until the end of January.

In the previous fortnightly review, the government had reduced petrol prices by Rs10.28 per litre and HSD by Rs8.57.

Petrol is primarily used by commuters, including owners of small cars, motorcycles and rickshaws. Higher petrol prices disproportionately affect middle- and lower-middle-income households that rely on fuel for daily transportation.

High-speed diesel, meanwhile, is widely used in heavy transport vehicles, buses, trains and agricultural machinery such as tractors and tube wells. Its price is considered highly inflationary, as increases directly contribute to higher freight costs and rising prices of essential goods, including vegetables and food items.