ISLAMABAD: The government raised the prices of petrol and high-speed diesel (HSD) due to changes in international oil prices. The new prices will remain in force until the end of February 2026.
In a late-night notification, the Petroleum Division said the increase was made after reviewing global market trends and on the advice of the Oil and Gas Regulatory Authority (OGRA).
According to the notification, the ex-depot price of high-speed diesel was increased by Rs7.32 per litre to Rs275.70, up from Rs268.38 per litre.
HSD is widely used in the transport and agriculture sectors, including trucks, buses, trains, tractors and tube-wells. Any rise in its price usually pushes up transport costs and food prices, especially vegetables and other daily items.
ALSO READ
PM Shehbaz launches Rs38bn Ramazan Relief Package 2026
The ex-depot price of petrol was increased by Rs5 per litre to Rs258.17, from Rs253.17 per litre. Petrol is mainly used in private cars, motorcycles and rickshaws, and the price hike directly affects the budgets of middle- and lower-middle-income families.
At present, the government is charging around Rs105 per litre on petrol and about Rs97 per litre on diesel in the form of taxes and levies.
Although the general sales tax (GST) on petroleum products is zero, the government is collecting a petroleum levy of Rs87 per litre on petrol and Rs79 per litre on diesel. This amount also includes a Rs2.50 per litre Climate Support Levy (CSL).
ALSO READ
Sindh Education Department announces SSC, HSSC exam schedule for 2026
In addition, the government is charging around Rs17 to Rs18 per litre as customs duty on both petrol and diesel, whether they are locally produced or imported. Oil companies and dealers also receive about Rs17 per litre as distribution and sale margins.
Petrol and diesel are the government’s main sources of fuel revenue, with average monthly sales of 700,000 to 800,000 tonnes, compared to only about 10,000 tonnes for kerosene. During the last fiscal year (FY2025), the government collected about Rs1.161 trillion through petroleum levy alone. This amount is expected to rise by around 27 percent to Rs1.470 trillion in the current fiscal year.
