Motorists across Pakistan may face higher petrol prices later this month as petrol and diesel prices are expected to increase following the upcoming fortnightly review. Officials indicated that new rates could be announced on Sunday, February 15, after 9 PM, taking effect the next day.
According to sources, the revision could see petrol rise by Rs4.39 per litre, while high-speed diesel (HSD) may go up by Rs5.40 per litre. Kerosene prices are expected to increase by Rs4 per litre, and light diesel oil could see the steepest hike at Rs6.55 per litre.
The Oil and Gas Regulatory Authority (OGRA) has completed its calculations and will submit a summary of the proposed changes to the Petroleum Division. Following approval from the Prime Minister, the new rates will be officially notified.
Currently, petrol at major city pumps is selling at Rs254.3 per litre, with hi-octane fuel priced at Rs268.95 per litre. Many commuters were hoping prices might hold steady or even drop before the end of February. However, recent indications suggest an upward adjustment.
The previous fortnightly review, announced on February 1, saw petrol and HSD rates reduced by Rs10.28 and Rs8.57 per litre respectively. Petrol, widely used in private vehicles, rickshaws, and two-wheelers, affects household budgets, particularly for the middle and lower-middle classes. Diesel, primarily used in heavy transport, agriculture, and public transport, influences prices across the economy, including vegetables and other essential goods.
Despite zero general sales tax on petroleum, the government charges levies and duties that add significantly to retail prices. Petrol attracts Rs82 per litre in combined petrol levy and climate support levy, while diesel carries Rs78 per litre. Custom duties, distribution margins, and dealer commissions further raise costs.
Petrol and diesel remain major revenue sources for the government, with monthly sales averaging 700,000 to 800,000 tonnes. Revenue from the petroleum levy alone reached Rs1.161 trillion in FY2025 and is projected to rise to Rs1.470 trillion this year.
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