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Kerosene Oil Price Surges in Pakistan Amid New Climate Levy

Kerosene Oil Price Surges in Pakistan Amid New Climate Levy

The price of kerosene oil in Pakistan has jumped significantly following the government’s recent hike in petrol and diesel rates, as part of broader fiscal adjustments tied to International Monetary Fund (IMF) requirements.

According to a notification issued Tuesday by the Oil and Gas Regulatory Authority (OGRA), the price of kerosene oil has risen by Rs15.23 per litre, taking it from Rs169.20 to Rs184.43.

Also Read: Significant Oil and Gas Reserves Discovered in Khyber Pakhtunkhwa

This increase coincides with the federal government’s enforcement of new taxes on petroleum products, including the introduction of a Rs2.50 per litre Climate Support Levy on petrol, diesel, and kerosene, aligned with IMF climate financing commitments for the fiscal year 2025-26. To offset the impact, this levy was adjusted by slightly reducing the existing Petroleum Development Levy (PDL). Kerosene now carries a total levy burden of Rs21.45 per litre, combining the new climate levy and an existing Rs18.95 PDL.

The price of petrol has also surged by Rs14.80 per litre, reaching Rs266.89, while high-speed diesel now costs Rs272.98 per litre after a Rs10.39 hike, according to the Ministry of Finance.

The fuel price hike and new levies are expected to further strain household budgets and drive inflation, especially in rural areas where kerosene remains a widely used fuel for lighting and cooking.

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