Pakistan Raises Petroleum Levy Sharply, Fuel Prices Expected to Rise Further

Islamabad — The federal government has increased the petroleum levy on fuel, raising concerns about additional inflationary pressure on consumers across Pakistan.

According to official sources, the levy on petrol has been increased by Rs26.77 per litre, taking the total petroleum levy to Rs107.38 per litre. Previously, the levy stood at Rs80.61 per litre.

Officials said the decision was taken to boost government revenue and meet fiscal requirements amid ongoing budgetary pressures.

The increase comes shortly after a separate adjustment in fuel prices, where petrol and diesel rates were also raised. Petrol is now priced at Rs393.35 per litre, while diesel has been set at Rs380.19 per litre.

Economists warn that higher fuel costs could further fuel inflation, as petroleum prices directly impact transport, food supply chains, and overall cost of living. The move is expected to add pressure on households already facing rising living expenses.