A strategic adjustment in petroleum levies has reshaped fuel pricing dynamics in Pakistan, softening diesel costs while limiting petrol relief despite falling global oil prices.
ISLAMABAD: Pakistan’s latest fortnightly fuel review has revealed a sharp policy balancing act, where the government increased the petroleum levy on petrol while reducing it on high-speed diesel to manage inflationary pressure and fiscal needs.
Petrol prices were reduced by Rs4 per litre, bringing the new rate to Rs377.78 per litre. However, the relief was significantly muted as authorities raised the petrol levy from Rs91.34 to Rs116.08 per litre, absorbing most gains from falling international oil prices.
Official data showed global benchmarks dropped sharply, with petrol’s international cost falling by Rs26.60 per litre. Despite this, consumers received only partial benefit due to higher domestic levies.
In contrast, high-speed diesel prices remained unchanged at Rs380.78 per litre. Although global diesel costs surged and ex-refinery prices increased by Rs24.41 per litre, the government offset the impact by reducing the diesel levy from Rs68.93 to Rs44.59 per litre.
Officials say the move aims to protect transport and agriculture sectors from inflation shocks while maintaining revenue targets tied to fiscal commitments. Analysts view the dual approach as a delicate attempt to balance economic stability with budgetary pressure ahead of the new fiscal year.
About The Author
