ISLAMABAD: Under the latest fuel price revision effective March 14, the Petroleum Levy (PL) accounts for 32 percent of the ex-depot price of petrol and 16 percent of High-Speed Diesel (HSD).
With the PL fixed at Rs55 per litre, these figures highlight the significant tax component within the current weekly pricing structure.
On Saturday, the Petroleum Division did not change the prices of petroleum products (Petrol, HSD) for next week. The price of petrol is kept unchanged at Rs 321.17 per litre and HSD at Rs 335.86 per litre. It stated that the government has decided to maintain the existing prices of the petroleum products till further order.
As per the March notification, PL was raised from Rs 84.40 per litre effective 1 March 2026, a day after the US-Israel war with Iran, to Rs 105.37 per litre or a difference of Rs 20.97 per litre – a 25 percent rise. The maximum ex-depot price was notified as Rs 266.17 per litre on March 1 and Rs 321.17 per litre on March 7- accounting for the levy constituting 31 percent of the maximum depot price on March 1, while the March 7 upgrade in levy accounted for 32percent of the maximum depot price.
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However, the PL on HSD has reduced to Rs 55.24 per litre for the ex-depot price of Rs 335.86 per litre on March 7, 2026. Earlier, it was Rs 76.21and Rs 280.86 per litre.
The increase is part of the government’s commitment to the International Monetary Fund (IMF) to maximize non-tax revenue through the PL. Currently, the General Sales Tax (GST) on petrol remains at zero. If a standard 18 percent GST were applied, the total tax burden would exceed 40 percent.
The government has a budgetary PL target of Rs 1.47 trillion against the budgeted amount last year of Rs 1.28 trillion. In the first six months of the current fiscal (July-December), Rs 822 billion have been collected under the head.
Pakistan Petroleum Dealers Association (PPDA) on Friday demanded that the government increase the dealers’ margin to eight percent. They said petroleum product prices have witnessed an extraordinary increase of Rs 55 last week, and it has not only burdened the public but also created serious financial difficulties for petroleum dealers, as now they have to pay more for the purchase of petroleum products.
Copyright Business Recorder, 2026
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