ISLAMABAD: The government on Sunday increased the petrol and high-speed diesel (HSD) prices by Rs5 and Rs7.32 per litre, respectively, till the end of February, owing to movement in international market prices.

In a late-night announcement, the petroleum division said the revision followed movements in international markets and recommendations from the Oil and Gas Regulatory Authority (Ogra).

According to the announcement, the ex-depot price of HSD has been increased by Rs7.32 per litre (2.7pc) to Rs275.70 per litre for the current fortnight from Rs268.38 per litre. Most of the transport sector runs on HSD. Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables.

The ex-depot petrol price was increased to Rs258.17 from Rs253.17 per litre, up 2pc. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.

The government is currently charging about Rs105 per litre on petrol and about Rs97 per litre on diesel. Although, general sales tax (GST) is zero on all the petroleum products, yet the government is charging petroleum levy at the rate of Rs79 per litre on diesel and Rs87 per litre on petrol and other high octane products. This also includes Rs2.50 per litre climate support levy (CSL).

The government is also charging about Rs17-18 per litre custom duty on petrol and HSD, irrespective of their local production or imports. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.

Petrol and HSD are the major revenue spinners with their monthly average sales of about 700,000 to 800,000 tonnes per month compared to just 10,000 tonnes of monthly demand for kerosene. The government recovered about Rs1.161 trillion through petroleum levy alone in FY2025 and expects this to jump by about 27pc to Rs1.470 trillion during current fiscal year.

Published in Dawn, February 16th, 2026