Massive Increase in Petroleum Levy Raises Fear of Price Hike Wave

The government has announced a substantial increase in petroleum levy rates on petrol and diesel, a decision likely to impact transportation costs and overall inflation in the country.

As per a notification released by the Ministry of Finance Pakistan, the levy on petrol has been increased from Rs 103.50 to Rs 117.41 per litre, while the levy on diesel has been revised upward from Rs 28.69 to Rs 42.60 per litre.

Economic analysts warned that the latest increase could lead to higher prices of food products, transport services, and other essential commodities, as fuel remains a key component in supply chain and logistics operations.

The government has also introduced a carbon levy on furnace oil for the first time in Pakistan’s history. The levy has been fixed at Rs 2,665 per metric ton, according to the official notification.

Experts said the measure may help the government improve revenue generation and align environmental taxation with broader fiscal reforms. However, they cautioned that repeated increases in petroleum-related charges could intensify financial difficulties for ordinary citizens.

Consumers across the country are already facing rising electricity and gas bills, and further increases in fuel-linked costs may add to the economic burden on households and businesses alike.