Petrol, High-Speed Diesel Prices Burdened by Heavy Taxes and Levies in Pakistan

ISLAMABAD:Consumers in Pakistan are bearing the burden of rising taxes and levies on petrol and high-speed diesel, with government duties, margins and other charges significantly increasing the final prices of both fuels.

According to official documents, the basic cost of one litre of petrol is Rs197.69, while its current retail price has been set at Rs327.62 per litre. This means consumers are paying approximately Rs130.23 per litre in petroleum levy, taxes and various margins.

The charges included in the price of petrol comprise an Rs80 petroleum levy, Rs5 Climate Support Levy, Rs21.24 customs duty, Rs7.48 Inland Freight Equalisation Margin, Rs7.87 oil marketing companies’ margin and Rs8.64 dealers’ margin.

Similarly, the basic cost of one litre of high-speed diesel is Rs264.76, while its retail price stands at Rs380.86 per litre.

According to the document, consumers are paying around Rs116 per litre in levies, taxes and various margins on high-speed diesel. The fuel carries a petroleum levy of Rs74.28 per litre and a Climate Support Levy of Rs5.

Other charges on high-speed diesel include Rs15.68 in customs duty, Rs4.63 as Inland Freight Equalisation Margin, Rs7.87 as the oil marketing companies’ margin and Rs8.64 as the dealers’ margin.

The figures highlight the substantial difference between the basic cost of petroleum products and the prices ultimately paid by consumers at fuel stations.