Petrol, diesel prices raised by over Rs13 per litre

ISLAMABAD: The federal government on Friday increased the prices of petrol and high-speed diesel (HSD) by more than Rs13 per litre, with the revised rates taking effect from July 11.

According to a notification issued by the Petroleum Division, the price of petrol has been raised by Rs13.18 per litre to Rs310.71, while high-speed diesel has become costlier by Rs13.80 per litre, taking its new price to Rs323.30 per litre.

Petrol is widely used by private motorists, motorcyclists, rickshaw operators and small transport vehicles, making any increase particularly burdensome for middle- and lower-income households. Higher diesel prices also have a broad inflationary impact as the fuel powers heavy transport, agricultural machinery, power plants and industrial generators.

The latest revision comes as the government continues implementing fiscal measures agreed with the International Monetary Fund (IMF). From July 1, the climate support levy was doubled to Rs5 per litre, while adjustments were made to the petroleum levy.

At present, the government is charging around Rs70 per litre as petroleum levy on petrol and about Rs80 per litre on high-speed diesel, in addition to the climate support levy. Consumers also pay customs duties and other charges, taking the total tax component to around Rs95 per litre on petrol and Rs101 per litre on diesel.

The government is also collecting petroleum levy of approximately Rs21 per litre on kerosene and Rs16 per litre on light diesel oil.

Petrol and diesel remain the government's largest petroleum revenue sources, with combined monthly sales of around 700,000 to 800,000 tonnes, far exceeding demand for kerosene and other petroleum products.