On Tuesday, the federal government increased the price of petrol by Rs5.36 per litre and high-speed diesel (HSD) by Rs11.37 per litre for the next two weeks. The new petrol price now stands at Rs272.15, while HSD has jumped to Rs284.35 per litre.
According to the Finance Division, these new prices are based on the recommendations of OGRA (Oil and Gas Regulatory Authority) and related ministries. However, for the average Pakistani, this is yet another blow to their already tight monthly budget.
How the Price Hike Affects Daily Life
Petrol is not just fuel — it's the backbone of everyday transportation in Pakistan. Whether it's a motorcycle, rickshaw, or a small car, millions of people rely on petrol daily to go to work, drop their kids to school, or run small businesses.
High-speed diesel, on the other hand, powers heavy vehicles like buses, trucks, agricultural machinery, and even trains. This fuel is directly linked to the cost of food, goods, and services across the country. When diesel prices go up, transporters raise their fares, and that cost is ultimately passed on to the common people in the form of expensive vegetables, grains, and other necessities.
Promises of Relief, But Ground Reality is Different
It’s confusing for many Pakistanis. On one hand, the government repeatedly claims that it wants to give relief to the public, but on the other hand, it continues to increase fuel prices regularly. For a common man, it feels like a “petrol bomb” is being dropped every few weeks, affecting every aspect of life—from groceries to school fees, from medical bills to electricity charges.
What’s worse is that this price hike comes despite the fact that there’s currently zero general sales tax (GST) on petroleum products. Still, the government is collecting nearly Rs98 per litre through other taxes and duties. This includes:
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Petroleum Development Levy (PDL) of Rs78.02 on petrol and Rs77.01 on diesel
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Climate Support Levy (CSL) of Rs2.25 per litre
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Customs Duty of around Rs20-21 per litre
And on top of that, oil companies and dealers earn Rs17 per litre as profit margins.
Fuel Prices = Inflation Everywhere
Whenever petrol or diesel prices rise, it's not just the fuel pump where you feel the pain. Prices of food items, public transport, building materials, medicines—almost everything—also goes up. This creates a wave of inflation, especially for those who are already struggling to make ends meet.
The rich may not feel the pinch, but for a daily wage worker, a rickshaw driver, a farmer, or a small shopkeeper, every single rupee matters. When their transport costs go up, their earnings stay the same, but their expenses increase. That’s a recipe for stress, debt, and financial instability.
Where is the Collected Money Going?
In FY2023-24, the government collected a massive Rs1.161 trillion through the petroleum levy. For the current fiscal year (FY2024-25), the target is Rs1.470 trillion — a 27% increase.
So, even without GST, petrol and diesel remain a major source of revenue for the government. But the big question is: where is all this money going? Is it being used to improve public transport, reduce inflation, or offer healthcare relief? Unfortunately, most people don’t see any visible benefits on the ground.
The Real Cost of Living in Pakistan
Every time fuel prices go up, people in Pakistan are forced to make difficult choices. Should they buy food or pay for school fees? Should they visit a doctor or save that money for petrol? These are real questions that millions of families face today.
The government needs to understand that relief doesn't come from empty promises or speeches. Relief comes from actions—by controlling inflation, reducing taxes on fuel, and putting the needs of ordinary citizens first.
Until that happens, every petrol price hike will feel like yet another betrayal of the people who are already carrying too much on their shoulders.
