Web desk: The government on Sunday increased the prices of petrol and high-speed diesel (HSD) for the rest of February due to changes in global oil markets. As a result, petrol rose by Rs5 per litre, while HSD increased by Rs7.32 per litre.
In a late-night statement, the petroleum division said it revised the rates after reviewing international trends and recommendations from the Oil and Gas Regulatory Authority (Ogra). According to officials, recent shifts in global prices prompted the adjustment.
Under the new rates, the ex-depot price of HSD climbed by Rs7.32 per litre, or 2.7 per cent. The new price now stands at Rs275.70 per litre, compared to Rs268.38 earlier. Because the transport sector depends heavily on diesel, the increase will raise operating costs. For example, trucks, buses and trains consume large quantities of HSD nationwide. Farmers also rely on diesel to run tractors, tube-wells and threshers. Consequently, higher diesel prices often push up vegetable and food costs. In turn, this trend adds to overall inflation.
Meanwhile, the ex-depot price of petrol increased to Rs258.17 per litre from Rs253.17. This marks a 2 per cent rise. Since private cars, motorcycles and rickshaws use petrol daily, the hike directly affects household budgets. Therefore, many middle- and lower-middle-income families may face added financial pressure.
At present, the government collects about Rs105 per litre on petrol and nearly Rs97 per litre on diesel in taxes and levies. Although authorities charge zero general sales tax (GST) on petroleum products, they impose a petroleum levy of Rs87 per litre on petrol and other high-octane fuels. In comparison, they charge Rs79 per litre on diesel. Notably, these figures include a Rs2.50 per litre climate support levy (CSL).
In addition, the government charges customs duty of roughly Rs17 to Rs18 per litre on both fuels. This duty applies to local production as well as imports. At the same time, oil marketing companies and dealers receive around Rs17 per litre in distribution and sales margins.
Overall, petrol and diesel remain the government’s main revenue sources among petroleum products. On average, monthly sales range between 700,000 and 800,000 tonnes. By contrast, kerosene demand stands at only about 10,000 tonnes per month. During fiscal year 2025, the government collected Rs1.161 trillion through the petroleum levy alone. Looking ahead, officials expect this figure to rise by 27 per cent to Rs1.470 trillion in the current fiscal year.
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