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Fuel levy shock deepens public anger as Pakistan faces mounting inflation

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Islamabad | May 10, 2026 1:55:53 PM IST
The Pakistan Petroleum Dealers Association (PPDA) and the Supreme Court Bar Association (SCBA) have strongly criticised the federal government over soaring fuel prices and excessive petroleum levies, warning that the measures are intensifying economic misery across the country.

Industry representatives and legal bodies alike say the latest taxation policy is burdening ordinary citizens while crippling fuel retailers, as reported by Dawn.

According to Dawn, the government enforced revised petroleum levies from May 9, imposing Rs 117.41 per litre on petrol and Rs 42.60 per litre on high-speed diesel sold at retail stations.

Levies on premium-grade fuels, including 95 and 97 RON petrol as well as the high-octane blending component (HOBC), have surged to more than Rs 305 per litre.

Additional charges have also been introduced on other petroleum products. Kerosene now carries a levy of Rs 20.36 per litre, while light diesel oil is taxed at Rs 15.84 per litre. Furnace oil users are facing a levy of Rs 77 per litre, amounting to over Rs 82,000 per tonne.

PPDA Vice Chairman Raja Waseem Shehzad condemned the government's reliance on indirect taxation, arguing that, rather than providing relief amid record inflation, authorities are making fuel increasingly unaffordable for the public. He stated that declining fuel sales are also causing severe financial strain on petrol pump operators, many of whom are struggling to manage rising business expenses.

Shehzad further criticised the government for failing to revise petroleum dealers' commissions on a percentage basis. He said retailers continue to receive fixed per-litre margins despite soaring operational costs, including sharp increases in electricity tariffs and utility charges.

Meanwhile, the SCBA leadership, including President Haroonur Rashid and Secretary Malik Zahid Aslam Awan, expressed serious concern over the latest increase in petrol and diesel prices, as highlighted by Dawn.

In a statement, the association said the fuel hike would worsen inflationary pressures and deepen hardships for citizens already grappling with economic instability. The SCBA urged the federal government to immediately reverse the latest price increases and announce broader relief measures, including cuts in electricity tariffs and essential commodity prices, as reported by Dawn. (ANI)

 
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