The federal government has imposed a record petroleum levy on petrol, raising it from Rs106 to Rs161 per litre — a sharp increase of Rs55 — as part of measures aimed at managing mounting fiscal pressures amid the global energy crisis.

Following the decision, petrol prices have climbed to an all-time high of Rs458.40 per litre, while high-speed diesel (HSD) now stands at Rs520.35 per litre. The government, however, removed the petroleum levy on diesel and retained only a Rs2.5 per litre carbon charge along with applicable import taxes.

Officials said the move came after Pakistan failed to obtain permission from the International Monetary Fund (IMF) to expand fuel subsidies beyond the agreed limit of Rs152 billion. The latest adjustment represents the second major increase in less than a month, pushing cumulative hikes to roughly 63% in petrol prices and 75% in diesel rates over recent weeks.

Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb announced the revised prices through a recorded statement, attributing the decision to surging international oil prices and supply disruptions triggered by escalating regional tensions and the closure of the Strait of Hormuz.

Other petroleum products also witnessed increases, with kerosene oil rising to Rs468 per litre and light diesel oil reaching Rs395 per litre. Analysts warn the sharp tax-driven price escalation is likely to intensify inflationary pressures and increase the financial burden on households already struggling with high living costs and slowing economic conditions.