New Petrol Levy on Petrol and Diesel in Pakistan from May 16
Why this matters: local context for readers following news across Pakistan and the region.
KARACHI – Pakistani government announced a fresh revision in fuel prices along with changes in petroleum levy amid volatility in the global energy market. While the levy on petrol has been reduced, it has been increased for high-speed diesel, alongside a Rs5 per litre cut in retail prices of both fuels nationwide. Pakistan’s fuel pricing system witnessed another dramatic shift as the government announced fresh revisions in petroleum prices along with a controversial reshuffle of the petroleum levy, underscoring ongoing instability in the energy sector. Petrol Levy Levy on petrol has been reduced by Rs9.24 per litre, bringing it down from Rs117.41 to Rs108.17 per litre. However, in a contrasting decision, the levy on high-speed diesel has been increased by Rs9.40 per litre, pushing it up from Rs42.60 to Rs52 per litre. Category New Rate Change Petrol (Retail Price) Rs409.78 per litre ↓ Rs5 High-Speed Diesel (Retail Price) Rs409.58 per litre ↓ Rs5 Petrol Levy Rs108.17 per litre ↓ Rs9.24 High-Speed Diesel Levy Rs52.00 per litre ↑ Rs9.40 Alongside the levy adjustments, the government also announced a Rs5 per litre reduction in the retail prices of both petrol and high-speed diesel. After the latest revision, petrol is now priced at Rs409.78 per litre, while high-speed diesel stands at Rs409.58 per litre across the country. According to an official notification issued by the Petroleum Division, the new prices took effect from midnight nationwide, immediately passing on the impact to consumers already facing rising living costs. The fuel market in Pakistan has remained on a turbulent path since March, marked by repeated fluctuations that have kept consumers and businesses on edge. During this period, petroleum prices have seen five separate hikes and three reductions, highlighting deep uncertainty driven by global oil trends and domestic economic pressures. The recent crunch escalated sharply after US-Israel conflict with Iran, when fuel prices surged by Rs55 per litre on