The federal government of Pakistan has increased the prices of petrol and diesel by Rs26.77 per litre on Friday. The new rates take effect immediately and will remain in place for the week ending May 1.
The decision follows global price shifts over the last fortnight and aligns with revenue targets set under commitments with the International Monetary Fund (IMF).
The IMF executive board will meet in early May to approve the disbursement of over $1.2 billion across two active programmes.
Prior to this notification, estimates as of April 23 suggested diesel prices would drop by Rs25 and petrol by Rs6. Instead, the government moved to increase petrol rates and partially restore the petroleum levy on diesel to meet fiscal goals.
The Petroleum Division announced the revision quietly on the same day that Iranian negotiators arrive in Islamabad for a second round of talks.
Under the new schedule, the ex-depot price of high-speed diesel (HSD) stands at Rs380.19, rising from the previous rate of Rs353.42. Diesel prices had peaked at Rs520.35 on April 10 before the Prime Minister temporarily removed a major hike in petroleum levy.
While HSD is a major driver of inflation due to its role in freight transport, the retail petroleum levy on diesel currently remains at zero.
Petrol prices reached Rs393.35 per litre, up from Rs366.58. The government increased the petroleum levy on petrol by approximately Rs27, taking it from Rs80 to Rs107.38 per litre. Total taxes on petrol now amount to roughly Rs135 per litre, while diesel carries Rs65 per litre in various duties and levies.
Petroleum Minister Ali Pervez Malik stated that rising regional tensions pushed oil prices up, forcing the government to pass the burden to consumers to fulfill international agreements. Malik noted that the government absorbed the increase in international prices for as long as possible and previously offered historic relief to the public.
