Govt raises petroleum levy, blocking expected relief to consumers

Consumers were denied anticipated relief in petroleum prices after the federal government increased the levy on petrol and high-speed diesel, effectively neutralising the expected reduction, 24NewsHD TV channel reported on Friday.

According to the TV channel sources, the petroleum levy on petrol has been raised by Rs 4.65 per litre, taking the total levy to Rs 84.27 per litre.

Meanwhile, the levy on high-speed diesel has been increased by Rs 0.80 per litre, pushing it to Rs 76.21 per litre. The revised rates came into effect today.

Sources said the government’s decision to raise the levy prevented the transmission of possible price reductions to the public.

Had the levy been kept unchanged, petrol could have become cheaper by Rs4.65 per litre and high-speed diesel by Rs0.80 per litre, they added.

The development comes barely weeks after the government announced significant fuel price cuts ahead of the New Year.

On December 31, 2025, petrol was reduced by Rs 10.28 per litre and high-speed diesel by Rs 8.57 per litre, offering temporary relief to motorists and businesses.

Under that revision, the price of petrol had been fixed at Rs253.17 per litre, while high-speed diesel was priced at Rs258.80 per litre.

The earlier cuts had been widely welcomed at a time when inflation and rising living costs continued to squeeze households.

The latest levy increase, however, has dampened hopes for continued relief as citizens grapple with persistent economic pressures.

Reporter: Waqas Azeem