The government on Thursday kept the prices of petrol and high-speed diesel (HSD) unchanged for the next fortnight, while increasing the petroleum levy on both fuel.
Read More: Petroleum rates may drop from January 16
According to a statement issued by the Petroleum Division, petrol will continue to retail at Rs253.17 per litre and HSD at Rs257.08 from January 16. The decision comes amid pressure to balance revenue requirements with inflation concerns.
The petroleum levy on petrol has been raised by Rs4.65 per litre, while the levy on diesel has increased by 80 paise. Combined with the existing carbon levy, total charges now stand at Rs87 per litre on petrol and Rs79 on diesel.
Petrol is widely used in private vehicles, motorcycles, rickshaws and small transport, making its price particularly sensitive for middle- and lower-income consumers. Diesel, meanwhile, powers heavy transport vehicles, trains and agricultural machinery, and is often considered inflationary due to its direct link to freight and food prices.
Analysts say maintaining the base prices while raising levies allows the government to secure additional revenue without triggering immediate political backlash associated with headline fuel price hikes. However, higher levies eventually feed into broader cost structures, including transportation and supply chains.
The decision follows a series of price adjustments in recent months, as Islamabad navigates commitments tied to fiscal reforms and revenue targets. Fuel pricing remains a key component of these reforms, with authorities also monitoring international oil trends and exchange rate movements.
Market observers note that while the latest adjustment spares consumers from a direct increase at the pump, the cumulative burden of indirect taxes and levies could still weigh on household budgets and business operations.
Read More: Petrol, other fuel prices expected to fall from January 16
Fuel prices in Pakistan are revised fortnightly based on global energy benchmarks, import parity pricing and government taxation decisions.