The federal government on Tuesday announced a hike in fuel prices, raising petrol by Rs5.36 and high-speed diesel (HSD) by Rs11.37 per litre for the next 15 days.
According to a statement from the Finance Division, the revision is based on recommendations from the Oil and Gas Regulatory Authority (OGRA) and relevant ministries. The new prices are:
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Petrol: Rs272.15/litre
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High-Speed Diesel (HSD): Rs284.35/litre
No changes were announced for kerosene or light diesel oil.
Fuel prices are a sensitive issue, especially for lower- and middle-income groups. Petrol is widely used in motorcycles, rickshaws, and private cars, while diesel powers goods transport, agricultural equipment, and railways—making its price crucial to inflation and food supply costs.
Despite no general sales tax (GST), the government collects approximately Rs98 per litre in total levies. This includes:
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Petroleum Development Levy (PDL): Rs78.02 (petrol), Rs77.01 (diesel)
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Climate Support Levy (CSL): Rs2.25
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Customs duty: Rs20–21 per litre
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Dealer margins: Around Rs17 per litre
Petrol and diesel dominate national fuel consumption, with monthly sales between 700,000 to 800,000 tonnes, while kerosene usage remains minimal.
In FY24, the government collected Rs1.161 trillion in petroleum levies and aims to raise Rs1.47 trillion in FY25 — a 27% increase — highlighting the crucial role of fuel in public finances.
