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Pakistan Freezes Petrol and Diesel Prices as Petroleum Levy Is Increased

Officials present the levy hike as a revenue safeguard after recent oil and currency moves narrowed scope for price cuts.

Overview

  • Petrol and high-speed diesel will remain at Rs253.17 and Rs257.08 per litre from January 16 through end-January, according to the Petroleum Division.
  • The petroleum levy on petrol has been raised by about Rs4.62–4.65 per litre to Rs84.27, while the levy on HSD rose by Rs0.80 to Rs76.21, with HOBC also increased.
  • Authorities kept headline pump rates steady despite expectations of reductions, as global crude hovered near $63 per barrel and the rupee weakened slightly.
  • Analysts warn that steady diesel prices and higher levies can sustain pressure on freight and agriculture costs, increasing inflation risks.
  • The Climate Support Levy of Rs2.50 per litre remains in place and IFEM stands at Rs8.97 on petrol and Rs7.25 on HSD, following earlier price cuts in the first half of January.