Pakistan has increased the price of diesel by PKR 6 and kept the price of petrol unchanged for the next two weeks, according to an official notification issued on Sunday.
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 high-speed diesel by PKR 6 per liter, from PKR 278.44 to PKR 284.44. The price of petrol has been kept unchanged at PKR 265.45 per liter.
The prices have taken effect on November 16.
The price has risen following a rise in international oil benchmarks, which has increased the landed cost of key fuels, according to official calculations.
The massive increase in diesel prices is expected to add upward pressure on inflation, as most agricultural activity in Pakistan is carried out by diesel-powered tractors. The cost of transportation also increases as commercial vehicles use diesel.
Earlier, on October 31, Pakistan increased the price of petrol by PKR 2.43 per liter and that of high-speed diesel by PKR 3.02 per liter.
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 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.
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