ISLAMABAD: In a move set to intensify inflation across Pakistan, the federal government has raised the prices of petrol and high speed diesel by nearly Rs15 per litre with immediate effect, following the approval of a $1.2 billion tranche by the International Monetary Fund.

The increase, effective until May 15, comes despite a decline in international oil prices last week. Officials said the government opted to raise fuel rates to secure additional revenue and meet strict fiscal commitments agreed with the IMF under Pakistan’s ongoing economic reform programme.

Under the revised rates, petrol has surged by Rs14.92 per litre to Rs414.78, while high speed diesel has climbed by Rs15 to Rs414.58 per litre. Without changes in taxation, petrol and diesel prices would have fallen by approximately Rs4 and Rs6 per litre respectively.

Sources said the government sharply increased the petroleum levy to satisfy IMF conditions requiring an average levy of Rs80 per litre on major petroleum products. The levy on petrol, already above Rs103 per litre, has now crossed Rs120, while the levy on diesel has been raised by around Rs20 per litre from the previous rate of Rs29.

The tax burden on fuel has reached extraordinary levels. Consumers are now paying around Rs145 per litre in taxes and levies on petrol, including customs duty and climate support charges. Diesel carries a cumulative tax burden of about Rs100 per litre.

As diesel is the backbone of freight transport, agriculture and public logistics, the latest increase is expected to push up the prices of food, essential commodities and transport fares nationwide, adding fresh pressure on households already struggling with rising living costs.