Islamabad, April 25, 2026 – The federal government on April 24, 2026, raised petrol prices despite a decline in ex-refinery rates, as higher petroleum levy adjustments outweighed relief from global oil movements. The latest revision has sparked debate over whether revenue needs are being prioritized over consumer relief in a period of persistent inflationary pressure across Pakistan.
The latest revision has sparked debate over whether revenue needs are being prioritized over consumer relief in a period of persistent inflationary pressure across Pakistan.
According to data shared by Arif Habib, the revised petrol pricing structure shows mixed movements in key components, with government levies rising sharply while base costs showed a slight decline, ultimately pushing the final consumer price upward.
• Ex-refinery petrol prices declined by Rs3.15 per liter.
• Petroleum levy increased by Rs26.77 per liter to Rs107.38, reflecting government’s focus on revenue collection.
• IFEM adjustment increased by Rs3.15 per liter.
• OMC margins remained stable at Rs7.87 per liter.
Analysts say the increase reflects fiscal pressure on the government as petroleum levy remains a key revenue stream, especially amid slower tax collection growth. While international crude price movements showed some easing, domestic pricing adjustments were largely driven by policy decisions rather than cost pass through. Consumers, however, are expected to face continued inflationary impact, particularly in transport and food sectors linked to fuel costs.
Market watchers believe the trend signals a continued reliance on indirect taxation through fuel pricing, which may keep inflation elevated in the short term. They suggest that without targeted relief measures or subsidy adjustments, households will continue to absorb higher transportation and commodity costs. The situation underscores the policy challenge of balancing fiscal consolidation with public affordability in an inflation-sensitive economy. Further updates are expected in upcoming monetary policy announcements by authorities soon.