ISLAMABAD – Pakistanis brace for additional taxes in upcoming budget as the government is planning stern measures to boost tax revenue, including raising Levy on Petrol and Diesel. If approved, the new budget could see petrol prices around Rs275 per litre.
Motorists across the country of 242 million may soon face sharp increase in fuel costs as federal government plans to raise Petroleum Development Levy (PDL) to one hundred per litre in upcoming budget for fiscal year 2025–26.
The addition of petrol and other items is part of Pakistan’s commitments under IMF’s Extended Fund Facility, and could push petroleum prices from July 2025.
Petrol Price in Pakistan
| Fuel | Current Price | Expected Price |
| Petrol | 252.63 | 274–275 |
| Diesel | 254.64 | 277.54 |
Before Budget 2025-26, Petrol price hovers around Rs252.63 per litre, with Petroleum Development Levy set at Rs78.20. The proposed increase of Rs21.80 levy, along with a new Rs. 5 per litre carbon levy, would raise the total government levy on petrol to Rs. 105 per litre.
Diesel is currently priced at Rs254.64 per litre, and is also expected to see similar increase, potentially bringing its price close to Rs. 290–295 after the revised levies are implemented.
For third time in two months, the federal government has not passed on full benefit of lower global oil prices. In May 2025, Petrol prices remain unchanged at Rs252.63 per litre, while diesel has been reduced by Rs2 to Rs254.64 per litre.
To recover Rs34 billion in industry losses due to a tax change in the Finance Bill 2024-25, Inland Freight Equalisation Margin (IFEM) on fuel was increased. This adjustment will continue for 12 months. Despite zero GST, consumers still pay about Rs96 per litre in combined levies, customs duties, and dealer margins on petrol and diesel.
New Levy Rates for Petrol, Diesel in Pakistan – May 2025 Update
