• Petrol to be sold at Rs414.78 per litre, diesel rises to Rs414.78 per litre
• Levy on petrol increased to over Rs120 per litre
• Rise comes despite lower global oil rates last week

ISLAMABAD: With the consent of the International Monetary Fund (IMF), the federal government on Friday increased the prices of petrol and diesel by nearly Rs15 per litre each with immediate effect for the week ending May 15 to mop up higher revenues despite lower global fuel rates last week.

The decision came hours after the IMF executive board approved the disbursement of $1.2bn to Pakistan under two simultaneous programmes.

The increase in petrol and diesel rates involved about Rs20 per litre increase in petroleum levy, otherwise their retail prices should have dropped by Rs4 and Rs6 per litre, respectively, under the existing tax rates.

Unlike announcements by the prime minister at times of price cuts, the increase this time was discreetly released by the Petroleum Division at midnight.

As such, the ex-depot price of high-speed diesel (HSD) was fixed at Rs414.58 per litre for the next week instead of Rs399.58 at present, up by 3.75 per cent or Rs15 per litre.

The diesel price had come down from a peak of Rs520.35 on April 10 after the prime minister removed petroleum levy in two phases, but it has since started rising again.

HSD is considered the most inflationary item given its maximum use in freight transportation. Likewise, the ex-depot rate of petrol was set at Rs414.78 per litre for next week instead of Rs399.86 per litre, showing an increase of Rs14.92 or 3.75pc.

Petroleum levy

Informed sources said the IMF staff had set the condition of restoring an average pet­roleum levy of Rs80 per litre on both products.

The government was able to convince the IMF to meet the threshold by adding petroleum levy on petrol as well, which was already standing at Rs103 per litre. As such, the petroleum levy on petrol was jacked up to a little over Rs120.

On the other hand, the levy on HSD was increased by about Rs20 per litre from the existing rate of Rs29.

The two sides agreed to keep the primary balance target sacrosanct and achieve it at all costs, even if a further cut in the Public Sector Develop­ment Programme was required, informed sources said.

Subsidies would also be slashed from now onwards until the end of June.

The government is currently charging about Rs100 per litre on HSD in the shape of customs duty, petroleum levy, Rs2.5 climate support levy and inland freight equalisation margin.

Meanwhile, the total tax on petrol amounts to Rs145 per litre, including about Rs120 petroleum levy, Rs22 per litre customs duty and Rs2.5 per litre climate levy.

The government is also charging about Rs21 per litre petroleum levy on kerosene and about Rs16 per litre on light diesel oil (LDO), officials said.

Published in Dawn, May 9th, 2026