How Much Tax Is Charged Per Litre on Petrol and Diesel? Details Revealed

Islamabad: At the start of the new year, the government has announced a reduction in petrol and diesel prices, providing relief to the public. Petrol has been reduced by Rs10.28 per litre to Rs253.17, while diesel has been cut by Rs8.57 per litre to Rs257.08.

The government has suspended sales tax on petrol and diesel to ease the burden on consumers. However, other levies and margins remain unchanged.

According to official details, a petroleum levy of Rs79.62 per litre and a climate support levy of Rs2.50 per litre are still being charged on petrol. On diesel, a petroleum levy of Rs75.41 per litre and an oil marketing margin of Rs7.87 per litre continue to apply.

The inland freight margin on petrol has been increased by 81 paisas to Rs8.97 per litre, while the dealer margin remains unchanged at Rs8.64 per litre. Oil marketing margins and other additional charges have also been kept intact to ensure stability in the petroleum sector despite the price reduction.

The government stated that the suspension of sales tax will provide immediate relief to consumers, while retaining petroleum levies and climate support charges is necessary to maintain fiscal balance in the energy sector.

A spokesperson for the Ministry of Finance said the move was aimed at reducing the financial burden on the general public and promoting economic activity.

Energy experts believe that suspending sales tax on petrol and diesel will significantly lower daily expenses for consumers and have a positive impact on the transport and logistics sectors. Analysts also noted that the price cut is expected to support business activity and imports.

The public has welcomed the government’s decision, calling it a positive development and a welcome piece of news at the start of the new year.