No Relief at the Pump: Petrol Prices in Pakistan Remains Steady

Pakistan Prime Minister Shehbaz Sharif announced no changes in petrol or diesel prices for the next two weeks starting from March 16th, 2025, meaning drivers, businesses, and households won’t experience fluctuations in fuel costs despite global oil market shifts. 

What Are the New Fuel Prices?

Here are the updated petroleum price details:

• Petrol: Stays at Rs. 255.63 per liter
• High-Speed Diesel (HSD): Unchanged at Rs. 258.64 per liter
• Kerosene Oil: Remains Rs. 168.12 per liter (key for rural heating/cooking)
• Light Diesel Oil (LDO): Fixed at Rs. 153.34 per liter (used in agriculture/industry)

This freeze offers short-term relief but dashes hopes of a price cut hinted at earlier.

Why No Price Drop? Taxes vs. Expectations

Some rumors and media reports had predicted a massive drop for petrol price in Pakistan up to Rs. 15 per liter for petrol and smaller cuts for diesel/kerosene. So, why no change?

The answer lies in taxes:

• Petroleum Development Levy (PDL): Raised from Rs. 60 to Rs. 70 per liter for both petrol and diesel on an immediate basis.
• Customs Duty: Rs. 16 per liter for both petrol and diesel
• Distribution Dealer Margins: Oil companies’ and dealers’ margins are around Rs. 17 per liter

Even with 0% General Sales Tax (GST), the government levies around Rs. 76 per liter in taxes on petrol and diesel. With Rs. 60 per liter, which is likely to increase to Rs. 70 per liter.

What Does This Mean for Drivers & Businesses?

• Commuters: No extra savings for car/bike owners.
• Transport Sector: Bus, truck, and ride-hailing drivers face unchanged costs.
• Inflation: Stable fuel prices may slow price hikes for groceries and goods.

Will Petrol Price in Pakistan Drop Soon?

With global oil prices fluctuating, Pakistan’s next price review (March 31) could bring changes. However, high taxes mean that any global drop might not be helpful for the public.

Are you relieved prices didn’t rise or disappointed they didn’t fall? Share your thoughts below!