The federal government has further burdened the public by increasing the petroleum levy on both petrol and high-speed diesel (HSD), just hours after a fuel price revision was announced. The petroleum levy has been increased by Rs2.50 per litre on both key fuels. According to official details, the levy on petrol now stands at Rs78.02, up from the previous Rs75.52 per litre.

Meanwhile, the levy on high-speed diesel has been raised from Rs74.51 to Rs77.01 per litre. In addition to this, the federal government continues to collect a separate Climate Support Levy, charging Rs2.50 per litre on both petrol and diesel under that head.

The increase comes on the heels of a midnight price adjustment issued by the Finance Ministry on August 31, when petrol prices were reduced by Rs7.54 per litre, bringing the new rate down to Rs264.61. On the other hand, the price of high-speed diesel was increased by Rs1.48, setting the new rate at Rs285.83 per litre.

It is also worth mentioning that the government has already introduced a new "Carbon Levy" of Rs2.50 per litre on petrol, diesel, and furnace oil as part of the FY2025–26 federal budget. This carbon levy will double to Rs 5 per litre in the 2026–27 fiscal year, as per the budget document 2025-26.

Credit: Independent News Pakistan (INP)