Special Correspondent
Islamabad, April 25, 2026: The federal government has sharply increased the petroleum levy, drawing criticism and raising concerns about an added financial burden on the public already struggling with rising costs.
According to sources, the levy on petrol has been increased by Rs26.77 per litre, taking the total to Rs107.38 per litre. Earlier, the levy stood at Rs80.61 per litre, meaning a substantial hike has been imposed in a single adjustment.
The increase in petroleum levy is expected to have a direct impact on fuel prices, which could in turn trigger further inflationary pressures across multiple sectors, including transportation and essential commodities, ultimately affecting consumers nationwide.
Since the outbreak of the US-Iran war on February 28, 2026, the government of Pakistan has repeatedly increased petroleum prices in response to sharp fluctuations in global oil markets.
In early March, petrol prices were raised dramatically by over Rs55 per litre, while subsequent revisions pushed prices up by more than 40 percent overall as supply disruptions in the Gulf region intensified.
These increases have been largely attributed to rising international crude oil prices and constraints in supply routes, particularly through the Strait of Hormuz, which plays a critical role in global energy shipments.
While officials have yet to provide a detailed explanation for the latest levy increase, the move appears to be part of broader efforts to enhance government revenue amid ongoing economic challenges.
The development has sparked concern among the public, who fear additional strain on household budgets in the coming days.