ISLAMABAD: The Pakistan government raised petrol and high-speed diesel (HSD) prices by Rs5 and Rs7.32 per litre respectively, effective until the end of February. The petroleum division said this move was due to changes in international market prices and a recommendation from the Oil and Gas Regulatory Authority (OGRA). The ex-depot price of HSD was increased by Rs7.32 per litre, a 2.7% rise, reaching Rs275.70 per litre from Rs268.38. Diesel is widely used in heavy transport vehicles, trains, and farming equipment like trucks, buses, tractors, and tube-wells. This hike is likely to push inflation higher, especially affecting vegetable and food prices. Petrol prices were raised by Rs5 per litre or 2%, from Rs253.17 to Rs258.17. Petrol mainly fuels private transport such as small vehicles, rickshaws, and two-wheelers, impacting lower and middle-income families directly. Currently, the government charges approximately Rs105 per litre on petrol and Rs97 per litre on diesel through various levies. Although general sales tax (GST) is zero on petroleum products, a petroleum levy of Rs79 per litre on diesel and Rs87 per litre on petrol and high-octane products applies. This also includes a Rs2.50 per litre climate support levy. Additionally, about Rs17-18 per litre in customs duties and around Rs17 per litre in distribution and sale margins go to oil companies and dealers. Petrol and HSD are major government revenue sources, with average monthly sales of 700,000 to 800,000 tonnes, compared to 10,000 tonnes of kerosene monthly demand. The government earned roughly Rs1.161 trillion through petroleum levies in fiscal year 2025 and expects a 27% increase to Rs1.470 trillion this fiscal year. This adjustment, announced late Sunday, reflects ongoing global fuel price movements and aims to balance market realities with government revenue needs.