ISLAMABAD: In yet another move that stunned consumers, the government late Friday night raised petroleum product prices by more than Rs13 per litre, while simultaneously increasing the levy on petrol to Rs80 per litre — up from Rs70.36.
The sudden increase has drawn sharp criticism, as the Shehbaz Sharif administration failed to bring rates down to pre‑war levels of February 28, even when international markets eased. Yet the same government rushed to impose higher costs overnight, burdening households and transporters with fuel that had not even landed in the country.
Senior journalist Shahbaz Rana noted that the levy, introduced as an alternative to 18% GST to keep revenue outside the divisible pool, should today stand at around Rs41 per litre.
“The government is charging an extra Rs40 per litre, including today’s increase,” he said, adding that at GST‑equivalent rates, petrol could have been Rs270 per litre and diesel Rs293. He warned that the federal government was punishing citizens to finance spending in provincial domains, raising indirect taxes without Parliament’s explicit approval.
The government can No more be supported for its move to keep petroleum levy high at Rs80 per litre on petrol.
1- Levy had been introduced as an alternate to 18% GST to keep money out of divisible pool so it’s not shared with provinces.
2-At 18% GST, the levy rate today should…— Shahbaz Rana (@81ShahbazRana) July 10, 2026
The overnight hike was accompanied by a media blitz, with Prime Minister Shehbaz Sharif engaging in telephonic conversations with world leaders to ease Middle East tensions. Months of such diplomatic manoeuvres, however, have yielded little for Pakistan or its people, leaving citizens to grapple with soaring costs at home while the government pursues elusive gains abroad.
Constitutional experts have also raised questions over whether the National Assembly can delegate taxation powers without setting an upper limit, underscoring the legal dimension of the levy’s steep climb.
For ordinary Pakistanis, meanwhile, the immediate impact is clear: higher transport fares, rising food costs, and yet another reminder that fiscal manoeuvring in Islamabad continues to weigh heavily on household budgets.
