Fuel prices likely to increase again in Pakistan After Budget 2025- 2026 — here’s how much
The Government of Pakistan is planning to raise fuel prices. If approved, the cost of petrol and diesel could go up by about Rs. 5 to Rs. 7 per litre starting June 16, 2025.
Budget Proposals for Fuel Charges
- Carbon Levy
- As part of the 2025–26 budget, a new carbon levy of Rs. 2.5 per litre is expected to be added to fuel prices.
- This levy is meant to reduce the use of fossil fuels and raise money for climate and environmental programs.
- The government aims to collect Rs. 48 billion from this levy in its first year.
- From the 2026–27 fiscal year, this levy might increase to Rs. 5 per litre in Pakistan.
- Sales Tax or Extra Surcharge
- Officials are also considering adding an extra Rs. 3 to Rs. 5 per litre as either a sales tax or additional charge.
- This would help recover earlier tax losses and provide financial support to oil refineries and fuel marketing companies.
Current Fuel Prices (as of June 1, 2025)
- Petrol: Rs. 253.63 per litre
- Diesel: Rs. 254.64 per litre
What This Means for Consumers
If these changes are implemented, fuel prices could rise by at least Rs. 5 per litre from June 16, 2025.
This would likely increase transportation and delivery costs, which could also lead to higher prices for everyday goods.
