ISLAMABAD: The government on Tuesday incre­ased petrol and high-speed diesel (HSD) prices by about 1.5 per cent for the fortnight ending Oct 15, while reducing liquefied petroleum gas (LPG) rates.

In a late-night announ­cement, the Ministry of Finance said the revision followed movements in international markets and recommendations from the Oil and Gas Regulatory Authority (Ogra) and relevant ministries.

The ex-depot price of HSD has been increased by Rs4.04 per litre (1.48pc) to Rs276.81 for the current fortnight from Rs272.77.

Most of the transport sec­tor runs on HSD and its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, bu­ses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables.

The ex-depot petrol price has been increased by Rs4.07 to Rs268.68 per litre from Rs264.61. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and direc­tly impacts the budgets of the middle and lower-middle classes.

The government char­ges about Rs99 per litre on both petrol and diesel. Although the general sales tax (GST) is zero on all the petroleum products, the government charges Rs79.50 per litre on diesel and Rs80.52 per litre on petrol and high-octane products on account of the petrol levy and climate support levy.

The government also charges about Rs17-18 per litre customs duty on petrol and HSD, irrespective of their local production or imports. In addition, about Rs17 per litre of distribution and sales margins are going to oil companies and their dealers. Petrol and HSD dominate consumption at 700,000 to 800,000 tonnes a month compared to about 10,000 tonnes for kerosene.

Petroleum levy collections reached Rs1.161 trillion in FY25 and are budgeted to rise about 27pc to Rs1.47tr in the current fiscal year.

Meanwhile, Ogra notified a Rs6.70 per kilogram (3.13pc) cut in LPG’s consumer price to Rs207.49 per kg (from Rs214.19).

The price of an 11.8kg cylinder has been set at Rs2,448.53 for October, down Rs79.14 from September. The government charges about Rs37,342 per tonne in GST and petroleum levy on LPG.

Published in Dawn, October 1st, 2025