ISLAMABAD: Petrol and diesel prices have surged sharply after the government increased taxes to meet fiscal commitments under the International Monetary Fund (IMF) program.
The government raised fuel prices by Rs. 26.77 per litre, pushing petrol to Rs. 393.35 from Rs. 366.58, while high-speed diesel climbed to Rs. 380.19 from Rs. 353.42 for the week ending May 1.
The hike comes contrary to earlier expectations of a price reduction, as global oil trends had indicated a possible decrease of around Rs. 6 per litre in petrol and Rs. 25 per litre in diesel. However, authorities increased the petroleum levy on petrol by approximately Rs. 27 per litre, raising it from Rs. 80 to Rs. 107.38 to boost revenue collection towards the end of the fiscal year.
Following the revision, total taxes on petrol have reached nearly Rs. 135 per litre, while diesel carries around Rs. 65 per litre in taxes, including petroleum levy, customs duty, and climate support charges.
Officials linked the decision to IMF-related commitments, as the lender’s executive board is expected to approve over $1.2 billion in funding for Pakistan in early May. The petroleum division issued the notification without major public announcement amid ongoing geopolitical tensions that continue to drive volatility in global oil markets.
Petroleum Minister Ali Pervez Malik said the government had absorbed rising international oil prices for as long as possible but was ultimately compelled to pass on the burden due to limited fiscal space.
He noted that fuel prices have remained highly volatile since late February, when escalating geopolitical tensions triggered a sharp increase in global crude oil prices.
