Petrol levy hits Rs160, diesel levy is abolished

April 03, 2026 (MLN): In a strategic bid to stabilize the national supply chain against soaring global energy costs, the Government of Pakistan has implemented a historic "tax-swap" by completely abolishing the Rs55 Petroleum Development Levy (PDL) on High-Speed Diesel (HSD) while simultaneously increasing the levy on petrol by Rs55 to a record Rs160.61 per liter.

This radical restructuring is designed to shield the diesel-dependent transport and agricultural sectors from a total economic shutdown, effectively shifting the fiscal burden onto private motorists to maintain revenue equilibrium while preventing a collapse in the movement of essential goods.

According to the official price breakup, the base import price for diesel has surged to nearly Rs497 per liter, making the elimination of the levy a critical intervention to keep the final price at Rs520.35.

Meanwhile, the high levy on petrol has pushed its ex-depot price to Rs458.41, despite a significantly lower base import cost of Rs271.27.

By concentrating the tax collection on petrol, the authorities are navigating a narrow path between meeting international revenue obligations and protecting the country's industrial backbone from the full force of international market volatility.

The new pricing structure also incorporates a uniform Climate Support Levy of Rs2.50 per liter across both fuels, alongside established dealer and OMC margins.

While the removal of the diesel levy provides a necessary cushion for the logistics sector, the cumulative impact of global price hikes and the petrol tax surge represents one of the most challenging economic adjustments in recent history, as reflected in the massive net increases of Rs137.24 for petrol and Rs184.49 for diesel.

Official Fuel Price Breakup (April 2026)

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