The federal government has increased the petroleum levy (PL) on petrol by Rs 4.62 per litre and on high-speed diesel (HSD) by Rs 0.80 per litre, according to a report published on Friday. The move offers no immediate relief to consumers, as authorities decided to keep fuel prices unchanged for the next fortnight.
The levy on High Octane Blending Component (HOBC) has also increased by Rs 4.62 per litre, raising the total PL on petrol and HOBC from Rs 79.62 to Rs 84.27 per litre. The PL on HSD now stands at Rs 76.21 per litre, up from Rs 75.41.
Alongside the higher levy, the government continues to collect a Climate Support Levy (CSL) of Rs2.50 per litre on petrol, HSD, and HOBC. Consumers of kerosene and light diesel oil are also paying levies of Rs 20.36 and Rs 15.84 per litre, respectively.
o The price of HSD remained steady at PKR 257.08/liter.
o The ex-refinery price of HSD decreased by PKR 0.69/liter.
o The petroleum levy however was increased by PKR 0.80/liter to PKR 76.21/liter.
o The IFEM was decreased by PKR 0.08/liter.
o The OMC margins remained… pic.twitter.com/x2SgPsdOvD
— Arif Habib Limited (@ArifHabibLtd) January 16, 2026Fuel prices also include the Inland Freight Equalisation Margin (IFEM), which currently amounts to Rs 8.97 per litre for petrol and Rs 7.25 per litre for HSD, further increasing the overall cost burden on consumers.
Industry analysts say the adjustment secures government revenue but keeps fuel costs elevated for households and transporters, even as international oil prices show signs of easing.
A separate notification issued by the Petroleum Division confirmed that petrol and HSD prices will remain unchanged at Rs253.17 and Rs257.08 per litre, respectively, until the end of January.
o The price of MS remained unchanged at PKR 253.17/liter.
o The ex-refinery price of MS decreased by PKR 4.57/liter.
o The petroleum levy however was increased by PKR 4.65/liter to PKR 84.27/liter.
o The IFEM was decreased by PKR 0.08/liter.
o The OMC margins remained… pic.twitter.com/Do5EDsX1Qm
— Arif Habib Limited (@ArifHabibLtd) January 16, 2026In the previous fortnightly review, the government had reduced petrol prices by Rs 10.28 per litre and HSD by Rs 8.57, offering temporary relief.
Petrol remains the primary fuel for small vehicles, rickshaws, and motorcycles. Any increase in its cost directly affects middle- and lower-middle-income households that depend on petrol for daily commuting.
High-speed diesel plays a critical role in the transport and agriculture sectors. It fuels trucks, buses, trains, tractors, tube wells, and threshers. Higher HSD prices tend to be inflationary, as they push up transport costs and contribute to rising prices of vegetables and other essential food items.
