Govt Announces Massive Increase in Petrol, Diesel Prices

The federal government has announced a huge increase in the prices of petroleum products for the last fortnight of fiscal year 2024-25. Under the revision, the prices of both petrol and high-speed diesel have been increased by Rs. 4.80 per liter and Rs. 7.95 per liter, respectively. The new price of petrol will be Rs. 258.43 while the new price of high-speed diesel will be Rs. 262.59. The new prices will take effect from June 16, 2025. At the last fortnightly review of petroleum prices, the federal government increased the price of petrol by Rs. 1 per liter and kept the rate of high-speed diesel unchanged. While the government charges zero general sales tax (GST) on petroleum products, it collects nearly Rs. 94 per liter through other levies. This includes a Petroleum Development Levy (PDL) of Rs. 78.02 on petrol and Rs. 77.01 on diesel, along with Rs. 16 per liter in customs duty on both fuels. Additionally, Rs. 17 per liter is allocated to oil companies and dealers as distribution and sales margins.