Pakistan Hikes Petrol and Diesel Prices for February
Middle and lower-middle-class budgets face fresh pressure as the government raises petrol and high-speed diesel prices effective until the end of February.
Highlights
- Petrol price increased by Rs5 per litre.
- High-speed diesel (HSD) price up by Rs7.32 per litre.
- New rates driven by international market movements.
- Government collects nearly Rs105 in various taxes per litre of petrol.
New Fuel Rates
The federal government announced a late-night revision in petroleum prices following recommendations from the Oil and Gas Regulatory Authority (Ogra). Petrol now costs Rs258.17 per litre, up from Rs253.17. High-speed diesel saw a steeper rise of 2.7%, reaching Rs275.70 per litre compared to the previous Rs268.38.
Inflationary Impact
HSD remains a primary fuel for heavy transport, trains, and agricultural machinery. This hike typically triggers an increase in the cost of vegetables and essential food items. Meanwhile, the petrol hike directly affects private commuters, rickshaw drivers, and motorcyclists across the country.
Tax and Levy Structure
Despite zero general sales tax, the government maintains high revenue collection through levies. Diesel carries a Rs79 per litre levy, while petrol attracts Rs87. These figures include a Rs2.50 climate support levy. Additionally, authorities charge approximately Rs18 in custom duties per litre, regardless of whether the fuel is locally produced or imported.
