Pakistan’s inflation-hit consumers faced another financial setback after the government increased the petroleum levy on diesel instead of passing on the expected relief from lower international fuel pricing trends. Officials revised the diesel levy upward despite calculations showing room for a significant reduction in retail fuel prices for consumers and transporters across the country.
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According to official documents, authorities had worked out a possible decrease of Rs12.80 per litre in diesel prices based on prevailing market conditions and pricing adjustments. However, instead of offering relief, the government increased the petroleum levy on diesel from Rs52 per litre to Rs58 per litre, further raising concerns among businesses and ordinary citizens.
Meanwhile, the levy on petrol remained unchanged at Rs102.17 per litre, while kerosene oil continued carrying a levy of Rs20.36 per litre under the current taxation structure. In addition, the carbon support levy on both petrol and diesel stayed unchanged at Rs2.50 per litre despite growing public frustration over increasing fuel-related expenses.
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The latest decision is expected to place additional pressure on transportation costs, goods delivery charges, and agricultural operations, as diesel remains widely used across Pakistan’s commercial and industrial sectors. Economists believe higher fuel-related taxes could eventually contribute to rising prices of essential commodities, further affecting households already struggling with persistent inflation.
Furthermore, transport operators and small business owners fear the increased diesel levy may trigger another wave of price hikes in food supplies, logistics, and public transportation services nationwide. Many consumers had expected meaningful relief after reports suggested falling global oil prices could reduce domestic fuel costs during the latest pricing review period.
The government has yet to provide a detailed explanation regarding the decision to increase the diesel levy despite the available margin for price reduction. However, the move highlights the state’s continued reliance on petroleum-related taxation to support revenue collection and manage broader fiscal challenges facing the national economy.