Govt hikes petrol by Rs13.18, diesel by Rs13.80 per litre

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

According to a notification issued by the Petroleum Division, petrol has been raised by Rs13.18 per litre, bringing its new price to Rs310.71 per litre. The price of high-speed diesel has gone up by Rs13.80 per litre and will now be sold at Rs323.30 per litre.

The latest revision comes after a period of sharp volatility in fuel prices. Diesel, which had risen from around Rs281 per litre following the outbreak of the US-Iran conflict on February 28, had touched a peak of Rs520.35 per litre on April 3 before easing later. Petrol also climbed significantly during the same period, rising from Rs266 per litre in early March to a peak of Rs458.41 on April 3.

The government is collecting multiple levies and duties on petroleum products. Under commitments linked to the International Monetary Fund, the climate support levy was doubled to Rs5 per litre from July 1, while the petroleum levy was adjusted downward.

At present, the petroleum levy is estimated at around Rs80 per litre on diesel and Rs70 per litre on petrol, in addition to the climate support levy. Diesel also carries customs duty and inland freight-related charges, taking the total government collection on the product to about Rs101 per litre. Petrol carries roughly Rs95 per litre in total taxes and duties.

Petrol and diesel remain the country’s main revenue-generating petroleum products, with monthly sales estimated at 700,000 to 800,000 tonnes.