Fuel prices in Pakistan to increase from December 1

Fuel prices in Pakistan may surge by a large margin from December 01, if the Pakistan government imposes a petroleum development levy to increase revenue.

Calculations from the oil sector show petrol prices could increase by PKR 2.50 per liter, diesel by PKR 3 per liter, and other products like light diesel and kerosene by PKR 4 per liter.

Analysts note that with a revenue shortfall of around PKR 200 billion from the targeted PKR 1,003 billion for November, the Petroleum Development levy might be imposed. However, due to concerns over inflation, the government may avoid raising prices.

The Finance Bill 2025 has increased the PDL to PKR 70 per litre, but currently, the levy is around PKR 60 per litre. In the last review, the government kept oil prices unchanged at PKR 248 per litre for petrol and PKR 255 per litre for diesel.

The government collected about PKR 261 billion from the PDL in the first quarter ending September 30, 2024, compared to PKR 222 billion in the same period last year, according to the Finance Ministry.

For the fiscal year ending June 30, 2024, the PDL collection was PKR 1,019 billion, with a target of PKR 1,280 billion for the current fiscal year.