The petroleum levy on petrol and diesel will remain unchanged after the federal government issued a notification confirming that the current rates will stay in place until further notice. According to the sources, petrol will continue to carry a levy of Rs105.37 per litre, while high-speed diesel will remain at Rs55.24 per litre.
The decision comes after major fuel-tax adjustments earlier this month, when the levy on petrol was raised from Rs84.40 per litre to Rs105.37 on March 1, 2026.
Under the latest arrangement, the government is keeping existing petrol and diesel prices unchanged from March 14 to March 20, according to the source text. It says the state will pay a subsidy of Rs23 billion to prevent any immediate increase in consumer prices.
That support includes Rs. 49.63 per litre for petrol and Rs. 75.05 per litre for diesel. The source text also says OGRA will release the funds after auditing claims submitted by oil marketing companies.
Why The Government Is Holding Fuel Prices Steady
The source text says the petroleum levy changes are tied to Pakistan’s commitment to the International Monetary Fund to strengthen non-tax revenue. Budget reporting from 2025 also showed the government had set a petroleum levy target of about Rs1.47 trillion for the fiscal year.
It adds that GST on petrol remains at zero. According to the source text, if the standard 18% GST were applied, the total tax burden would rise above 40%.
Read: Pakistan Keeps Petrol Price Unchanged At Rs321.17
The source text says the petrol levy increased by 25% on March 1, 2026. It also says the maximum ex-depot petrol price rose from Rs266.17 per litre on March 1 to Rs321.17 per litre on March 7, with the levy making up 32% of the depot price.
For high-speed diesel, the levy was reduced from Rs 76.21 to Rs 55.24 per litre on March 7, even as the ex-depot price increased to Rs 335.86 per litre, according to the source text.
Alongside the petrol and diesel decision, the source text says kerosene oil has become more expensive by Rs39.20 per litre. OGRA fixed the new kerosene rate at Rs358.01, up from Rs318.81.
The source text also says Prime Minister Shehbaz Sharif approved a thrift fund, with the Cabinet’s Economic Coordination Committee allowing Rs27.1 billion to be transferred into it.
