Petrol prices likely to increase on March 1 – Check new rates

Despite stability in global oil prices, petrol prices in Pakistan are expected to rise. According to reports, due to fluctuations in the exchange rate, petrol prices may increase by up to Rs. 4 per litre starting March 1.

Expected Petrol and Diesel Prices – March 1

Sources suggest that the final estimate on February 28 will determine the exact price hike, with ex-depot petrol prices expected to rise by Rs. 4 to 4.5 per litre.

Meanwhile, high-speed diesel (HSD) and kerosene prices may decrease slightly. Ex-depot petrol is currently priced at Rs. 256.13 per liter, while high-speed diesel is sold at Rs. 263.95 per liter.

Current Petrol Prices in Pakistan

Taxes and Margins on Petroleum Products

The government is currently collecting around Rs. 76 per litre in taxes on petrol and HSD. Although the General Sales Tax (GST) is set at zero, the Petroleum Development Levy (PDL) is Rs. 60 per litre, which directly impacts consumers.

Read More: UAE petrol price expected – March 2025

Additionally, the government imposes a customs duty of Rs. 16 per liter, while oil companies and dealers charge a distribution and sales margin of Rs. 17 per liter.

Decline in Global Oil Prices

On the international market, oil prices in New York fell by 3% on Tuesday, reaching a two-month low due to weak economic news from the US and Germany.

This decline has raised concerns about a potential drop in global energy demand. However, due to Pakistan’s unstable exchange rate, local fuel prices are still expected to rise despite the global price drop.

Read More: Cement rates update in Pakistan – February 2025