Petrol Price Set to Rise by Rs. 4 Starting March 1

Wajahat

26 Feb 2025

153

Petrol Price Set to Rise by Rs. 4 Starting March 1

After a Rs. 1 reduction in petrol prices earlier this month, the federal government is now considering a potential increase of Rs. 4 to Rs. 4.50 per litre. Meanwhile, diesel prices might drop slightly, with an expected reduction of less than Re. 1 per litre, starting March 1, 2025. These adjustments are mainly due to global fuel market trends and exchange rate movements.

Why Is Petrol Becoming More Expensive?

The projected rise in fuel costs is largely influenced by global oil price fluctuations and Pakistan’s weakening exchange rate against the US dollar. Despite Brent crude oil prices remaining stable over the last ten days, minor market shifts have led to expected changes in domestic fuel prices.

If the hike takes effect, Petrol Prices; petrol will cost Rs. 260.13 per litre, up from the current Rs. 256.13. Prices for high-speed diesel and kerosene oil, presently at Rs. 263.95 and Rs. 171.65 per litre, respectively, might also be revised.

Current & Expected Fuel Prices in Pakistan

Fuel Type	Current Price (Rs. per litre)	Projected Price (Rs. per litre)
Petrol	256.13	260.13
High-Speed Diesel (HSD)	263.95	Slight decrease expected
Kerosene	171.65	May vary based on market demand

Although kerosene's official price is Rs. 171.65 per litre, it is frequently sold at Rs. 300 to Rs. 350 per litre in various markets due to limited availability.

Taxation & Government Revenue on Fuel

Despite the absence of General Sales Tax (GST) on fuel, the government imposes several other levies, significantly increasing fuel costs.

Breakdown of Fuel Charges & Taxes

Charge Type	Rate (Rs. per litre)
Petroleum Development Levy (Petrol & Diesel)	60
Customs Duties	16
Distribution Margins	17

Those using high-octane petrol (95RON) or light diesel in luxury vehicles face even higher levies, with additional charges reaching Rs. 50 per litre.

With petrol and diesel consumption averaging between 700,000 to 800,000 tonnes per month, these levies provide a major source of government revenue. In contrast, kerosene demand is much lower, at roughly 10,000 tonnes per month.

Have Your Say!

What are your thoughts on the upcoming petrol price increase? Share your opinion in the comments!

Petrol Price Hike Fuel Price Increase Petrol Rates Pakistan March 2025 Petrol Price Diesel Price Update Pakistan Fuel Cost Oil Price Surge Government Fuel Policy Petrol Price Forecast Rising Fuel Prices

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