Increased levy on petrol limits consumer benefit despite Rs4 per litre reduction in ex-depot prices, while kerosene rates rise sharply.
The federal government has effectively denied consumers full relief from lower fuel prices by significantly increasing the petroleum levy on petrol, despite announcing a reduction in the ex-depot price for the coming week.
According to official documents, the government has revised petroleum product pricing by increasing kerosene oil rates and restructuring the petroleum levy on petrol and high-speed diesel (HSD).
Kerosene oil prices have been increased by Rs8.70 per litre, taking the new price to Rs280.70 per litre from the previous Rs272 per litre.
Meanwhile, the petroleum levy on petrol has been raised substantially by Rs24.74 per litre, increasing from Rs91.34 to Rs116.08 per litre. The move has effectively neutralised any significant relief that consumers could have received from lower international oil prices.
In contrast, the levy on high-speed diesel has been reduced by Rs24.34 per litre, falling from Rs68.93 to Rs44.59 per litre. This adjustment has enabled the government to maintain diesel prices at existing levels despite broader pricing pressures.
Officials said the restructuring of petroleum levies forms part of the government’s fiscal management strategy. However, the decision has drawn attention as petrol consumers continue to face inflationary pressures and rising living costs.
On Friday, the government announced a Rs4 per litre reduction in petrol prices while keeping HSD prices unchanged for the next week, according to a notification issued by the Ministry of Energy’s Petroleum Division.
Under the revised rates, the ex-depot price of petrol has been reduced to Rs377.78 per litre from Rs381.78 per litre. Meanwhile, the price of HSD remains unchanged at Rs380.78 per litre.
The latest adjustment follows a series of fuel price revisions linked to fluctuations in international oil markets. Last week, the government reduced the prices of both petrol and diesel by Rs22 per litre, offering substantial relief to consumers.
Petrol is primarily used by motorcyclists and private vehicle owners, while HSD is extensively utilised in the transport and agriculture sectors, making fuel pricing decisions critical for the broader economy.
