Islamabad, May 10, 2026 — New increases in petroleum levies announced by the federal government have triggered strong criticism from industry groups and legal bodies, who say the measures will deepen economic pain for ordinary Pakistanis already grappling with high inflation.
The Pakistan Petroleum Dealers Association (PPDA) and the Supreme Court Bar Association (SCBA) have both condemned the revised taxation, saying it places an undue burden on consumers and cripples fuel retailers. The changes took effect on May 9.
Under the new structure, a petroleum levy of Rs 117.41 per litre has been applied to petrol, while high-speed diesel (HSD) at retail stations now carries Rs 42.60 per litre. Levies on higher-grade fuels have jumped sharply: 95 and 97 RON petrol and the high-octane blending component (HOBC) face charges of more than Rs 305 per litre. Other products were hit as well — kerosene now carries a levy of Rs 20.36 per litre, light diesel oil Rs 15.84 per litre, and furnace oil has been levied at Rs 77 per litre (more than Rs 82,000 per tonne).
PPDA Vice Chairman Raja Waseem Shehzad criticized the government’s reliance on indirect taxes at a time of record inflation, saying higher levies make fuel unaffordable and have already caused sales to fall. Declining volumes, he warned, are producing severe cash-flow problems for petrol pump operators, many of whom struggle with rising operating costs such as higher electricity tariffs and other utility charges.
Shehzad also attacked the decision to keep dealers’ commissions fixed on a per-litre basis rather than switching to percentage-based margins. With costs rising rapidly, fixed commissions have eroded retailers’ profitability, he said.
The SCBA — led by President Haroonur Rashid and Secretary Malik Zahid Aslam Awan — warned that the fuel hikes will further fuel inflationary pressures and deepen hardships for households and businesses. The association urged the federal government to reverse the recent increases and to announce broader relief measures, including cuts to electricity tariffs and price relief on essential commodities.
Observers say the levies are likely to ripple through transport and commodity prices, compounding the challenge of stabilizing living costs. The PPDA and SCBA statements echo wider public frustration over shrinking purchasing power and the government’s fiscal choices.
Reports attributing the figures and reactions to Dawn and ANI note that the measures are government policy as of May 9. Industry groups and legal associations continue to press for immediate relief and a rethink of the taxation approach to avoid further economic strain.
