Islamabad, February 28, 2025 – Pakistan is preparing to revise petroleum prices for the first half of March 2025, with the new rates set to take effect from March 1, 2025.
The expected price adjustments are based on fluctuations in international crude oil prices and the Pakistan rupee’s exchange rate against the US dollar.
According to industry sources, the price of petroleum products is likely to see changes, with petrol expected to rise by approximately Rs4 to Rs4.50 per litre. Meanwhile, high-speed diesel (HSD) may experience a slight decrease, reflecting recent shifts in global fuel markets. The final price adjustments will be determined on February 28, considering Brent crude prices and exchange rate movements.
Currently, the ex-depot price of petrol in Pakistan stands at Rs256.13 per litre, while HSD is priced at Rs263.95 per litre. Kerosene, officially priced at Rs171.65 per litre, is being sold at significantly higher rates ranging from Rs300 to Rs350 per litre in the market.
Petrol remains an essential fuel for private vehicles, motorcycles, and small transport, making any price increase a financial strain on Pakistan’s middle and lower-income groups. Meanwhile, HSD is crucial for heavy transport, agriculture, and railways, meaning its price fluctuations directly impact inflation and the cost of essential goods.
Despite maintaining a general sales tax (GST) at zero, the Pakistan government collects approximately Rs76 per litre in taxes on both petrol and diesel. This includes a petroleum development levy (PDL) of Rs60 per litre and customs duties amounting to Rs16 per litre. Furthermore, oil marketing companies and dealers charge around Rs17 per litre in margins on both fuels.
Luxury fuel consumers also face high levies, with light diesel, high-octane blending components, and 95RON petrol carrying a Rs50 per litre petroleum development levy.
Petrol and HSD continue to be Pakistan’s primary revenue-generating fuels, with monthly sales ranging between 700,000 and 800,000 tonnes. In contrast, kerosene demand remains low, with consumption averaging around 10,000 tonnes per month. The government’s taxation policies on petroleum products remain a significant factor influencing fuel prices and their impact on inflation across Pakistan.