ISLAMABAD – Pakistanis are bearing brunt of soaring fuel prices as the government collects a petroleum levy of up to Rs80 per litre, with petrol becoming Rs145.13 more expensive since start of 2026 and diesel prices witnessing even sharper fluctuations this turbulent year.
Federal Petroleum Minister Ali Pervaiz Malik said regional tensions disrupted crude oil supplies and created a challenging situation for the petroleum sector. He said diesel prices reached unprecedented levels in global history, adding that the government understood the financial hardships being experienced by the public.
Petrol has increased from Rs253 per litre at the start of 2026 to Rs398.30 by October 10, with an increase of Rs145.13 per litre.
Diesel also became more expensive, climbing from Rs257.08 per litre at the start of the year to Rs396.24 on October 10, an overall increase of Rs139.16 per litre. The year witnessed even more dramatic price spikes. On April 3, petrol surged to Rs458.41 per litre, while high-speed diesel reached Rs520.35 per litre.
The repeated adjustments have kept motorists, transport operators and other fuel-dependent consumers exposed to substantial price volatility.
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Fuel prices have undergone dozens of revisions since government rolled out daily pricing mechanism linked to international market rates on July 21, 2026.
Between July 21 and October 10, petrol prices increased 35 occasions and declined 22 times. Diesel prices were raised 34 times and reduced on 23 occasions.
Malik said the petroleum levy was currently being charged at a rate of up to Rs80 per litre, while explaining that the levy was categorised as non-tax revenue and did not require a parliamentary vote. He said the government could not revise its levy collection target without consulting multilateral partners.
The maintained that petroleum prices were being passed on to consumers transparently in accordance with the applicable costs. He clarified that the Oil and Gas Regulatory Authority (OGRA), rather than the government directly, determined fuel prices.
The government’s petroleum levy receipts reached approximately Rs1.342 trillion between July 2025 and April 2026, compared with around Rs1.205 trillion collected between July 2025 and March 2026.
For fiscal year 2026-27, the government has set a collection target of approximately Rs1.676 trillion, reflecting the levy’s importance to its revenue plans.
