Diesel Price Climbs to Rs284.44 as Petrol Rate Remains Frozen
The federal government on Saturday announced its latest fortnightly fuel price adjustment, keeping the price of petrol unchanged while increasing the rate of high-speed diesel (HSD) by Rs6 per litre. According to the Finance Division’s notification, the new HSD price now stands at Rs284.44 per litre, effective November 16.
The decision, the government said, was made after reviewing recommendations from the Oil & Gas Regulatory Authority (OGRA) and other relevant ministries. While petrol users—mainly private motorists, two-wheeler riders, rickshaw operators, and middle-income households—will see no change in their fuel bills, the price hike in diesel is expected to create inflationary pressures across multiple sectors.
Diesel Hike Likely to Fuel Inflation Across Transport and Agriculture
High-speed diesel is the backbone of Pakistan’s transport and agricultural economy. It powers heavy-duty trucks, buses, trains, tractors, tube-wells, and threshers—machinery crucial for moving goods and supporting crop cycles. A rise in diesel prices typically pushes up the cost of vegetables, food supplies, and essential commodities, adding strain on consumers already hit by high inflation.
The government currently imposes around Rs99 per litre in taxes on both petrol and diesel. While general sales tax remains set at zero on petroleum products, substantial levies remain in place. Diesel is burdened with Rs79.50 per litre under the petroleum levy and climate support levy, while petrol carries Rs80.52 per litre. Additionally, customs duties of Rs17-18 per litre apply to both fuels—regardless of whether they are imported or locally refined. Oil companies and dealers further receive about Rs17 per litre as distribution and sales margins.
Fuel consumption trends show petrol and diesel dominate the market at 700,000 to 800,000 tonnes per month, compared to just 10,000 tonnes for kerosene. Revenue from petroleum levies continues to rise sharply, with collections reaching Rs1.161 trillion in FY25 and projected to climb by 27% to Rs1.47 trillion this fiscal year.
As diesel prices climb once again, economists warn of a fresh inflationary ripple at a time when household budgets remain under severe pressure.
