Govt Raises Petroleum Levy on Petrol and Diesel Amid Inflation Concerns

The federal government has significantly increased the petroleum levy on both petrol and high-speed diesel, intensifying concerns about another wave of inflation across the country.

According to an official notification issued by the Ministry of Finance Pakistan, the levy on petrol has been raised by Rs 13.91 per litre, increasing from Rs 103.50 to Rs 117.41 per litre. Similarly, the levy on diesel has been enhanced from Rs 28.69 to Rs 42.60 per litre.

Economic experts believe the latest increase may directly affect transportation costs and trigger higher prices for food items and daily-use commodities. Public transport fares are also expected to rise in the coming days as fuel costs increase further.

In another major development, the government has imposed a carbon levy on furnace oil for the first time. Under the notification, a carbon levy of Rs 2,665 per metric tonne has been enforced on furnace oil.

Analysts warned that the continuous rise in petroleum-related taxes could place additional pressure on inflation, while consumers are already struggling with elevated electricity, gas, and grocery bills.

Business circles and transport associations have also expressed concern over the decision, stating that higher fuel costs may increase operational expenses for industries and logistics sectors nationwide.