Pakistan raises petrol, diesel prices for rest of February

By Commerce Reporter

ISLAMABAD: The federal government on Sunday raised the prices of petrol and high-speed diesel (HSD) for the remaining days of February, citing fluctuations in global oil markets.

Read also: Govt raises diesel price by Rs11.30 per litre, keeps petrol rates unchanged

In a late-night notification, the Petroleum Division said the revised rates were determined in line with international price trends and recommendations from the Oil and Gas Regulatory Authority (Ogra).

Under the new prices, the ex-depot rate of HSD has gone up by Rs7.32 per litre, or 2.7 per cent, reaching Rs275.70 from the previous Rs268.38 per litre. HSD is widely used in heavy transport vehicles, trains and agricultural machinery such as tractors, tube-wells and threshers. Any increase in its price is considered inflationary, as it contributes to higher transportation costs and subsequently raises the prices of vegetables and other essential goods.

Similarly, the ex-depot price of petrol has been increased by Rs5 per litre, or 2 per cent, to Rs258.17 from Rs253.17 per litre. Petrol is mainly consumed by private vehicles, motorcycles, rickshaws and small cars, directly affecting middle- and lower-middle-income households.

At present, the government is collecting around Rs105 per litre on petrol and approximately Rs97 per litre on diesel in the form of various taxes and levies. Although general sales tax (GST) remains zero on petroleum products, the petroleum levy stands at Rs87 per litre on petrol and Rs79 per litre on diesel, which includes a Rs2.50 per litre climate support levy (CSL).

In addition, customs duty of about Rs17 to Rs18 per litre is imposed on both petrol and HSD, regardless of whether the products are locally refined or imported. Oil marketing companies and dealers also receive around Rs17 per litre as distribution and sales margins.

Petrol and HSD remain the government’s key revenue-generating petroleum products, with average monthly sales ranging between 700,000 and 800,000 tonnes, compared to just 10,000 tonnes for kerosene. During FY2025, the government collected approximately Rs1.161 trillion through the petroleum levy and is projecting a 27 per cent increase to Rs1.470 trillion in the current fiscal year.