ISLAMABAD: The Federal Government has announced a significant reduction in the price of kerosene oil, while simultaneously increasing the financial burden on consumers through hikes in petrol and diesel rates and an upward adjustment of the petroleum levy.
According to an official notification issued by the Ministry of Energy, the price of kerosene has been slashed by Rs 41.80 per liter. Following this reduction, the new retail price has been fixed at Rs 318.96 per liter. This move is expected to provide some relief to low-income households and rural sectors that rely heavily on kerosene for heating and cooking.
However, the reprieve in kerosene costs comes alongside a sharp increase in the prices of primary fuels. The price of petrol has been raised by Rs 14.92 per liter, bringing the new price to Rs 414.78. Similarly, the price of High-Speed Diesel (HSD) saw an increase of Rs 15 per liter, setting the new market rate at Rs 414.58 per liter.
This adjustment follows a trend of rising energy costs driven by global market volatility and domestic fiscal requirements.
There was a reduction of 21 paisa in petrol price in international market. But the government further increased the tax by Rs17.91 per litre to increase price to Rs415.
What sort of economic management is this?
Now Government is charging Rs117.5 per litre levy on petrol. This is…— Shahbaz Rana (@81ShahbazRana) May 9, 2026
Internal sources and media reports indicate that the government has also moved to bolster its revenue stream by increasing the petroleum levy.
– Petrol: The levy has been increased by Rs 13.91, bringing the total levy rate to Rs 117.41 per liter.
– Diesel: The petroleum levy on diesel was also hiked by Rs 13.91, raising the rate to Rs 42.60 per liter.
However, despite these frequent price adjustments and the ongoing search for energy security, economic analysts point to a troubling trend, noting that all recent oil and gas discoveries within the country have failed to show any positive impact on the domestic economy.
While exploration efforts continue, the added production has yet to translate into lower prices for the public or a reduction in the national circular debt. The reliance on heavy taxation through levies and the direct passing of global price shocks to the consumer underscores a persistent failure to leverage indigenous resources for macroeconomic stability.
