Pakistan increases petrol, diesel prices by PKR 3

Pakistan has increased the prices of petrol and diesel by up to PKR 3 for the next two weeks, according to an official notification issued on Friday.

The government revises the prices of petroleum products every fortnight in line with changes in global oil prices.

The Ministry of Finance notification stated that the price of petrol has been increased by PKR 2.43 per liter, from PKR 263.02 to PKR 265.45 and that of high-speed diesel by PKR 3.02 per liter, from PKR 275.41 to PKR 278.44.

The prices will take effect on November 1.

The price has increased following a rise in international oil benchmarks that has increased the landed cost of key fuels, according to official calculations.

The prices of diesel in the global market climbed by $2 per barrel to $90 and petrol (gasoline) by $1.40 to $81.44 per barrel, according to the working.

Economists warned that the latest revision could add slight upward pressure on inflation, which remains sensitive to energy price changes. While the current hike is minor, successive increases could weigh on household budgets and transportation costs, they said.

Earlier, on October 15, Pakistan reduced the prices of petrol and diesel by PKR 6.

Fuel prices in Pakistan are influenced not only by global crude prices but also by the government’s tax structure, particularly the Petroleum Development Levy (PDL).

The PDL is a fixed amount per liter levied on petroleum products and is a key source of non-tax revenue for the federal government.

As part of commitments made under the International Monetary Fund (IMF) program, Pakistan has gradually increased the levy on petrol and diesel in recent months.

The government can impose a maximum PDL of PKR 90 per liter on petrol and diesel under the Finance Act 2025. At present, the PDL on diesel is around PKR 77 per liter and that on petrol PKR 78 per liter. Even when global oil prices fall, domestic price reductions may be limited if the government chooses to maintain or increase the levy to meet fiscal targets.

For the current fiscal year 2025-26, the government has set a PDL collection target of PKR 1,468 billion, a growth of 26% from PKR 1,161 billion collected during fiscal year 2024-25.