How Much Taxes are Pakistanis paying on Petrol, Diesel after Surge in Levy?

ISLAMABAD – Pakistanis are facing record taxes on Petrol and Diesel prices, as the government maxed out near the limit to bridge tax shortfall.

A report shared by a local publication said the government is charging exorbitant taxes, duties, and margins on petroleum products, placing a heavy burden on masses.

According to official documents, citizens are paying up to Rs107.12 per liter in taxes, duties, and margins on petrol and Rs104.59 per liter on diesel.

The documents indicate that Rs70 levy per liter is imposed on both petrol and diesel, marking highest petroleum levy burden ever placed on the public in the country’s history. Furthermore, customs duties on petrol amount to Rs15.28  per liter, while high-speed diesel attracts a customs duty of over Rs15 per liter.

Taxes on Petrol and Diesel in Pakistan

Dealers are collecting a commission of rs8.64 paise per liter for both petrol and high-speed diesel, while oil marketing companies are earning a margin of Rs7.87 paise per liter. Inland Freight Equalization Margin (IFEM) adds an additional R5.33 paise per liter to petrol, while for high-speed diesel, the IFEM stands at Rs2.30 paise per liter.

Despite these high costs, the government is not charging any sales tax on petrol and diesel at present. However, the ex-refinery price of petrol is noted at Rs148.51 paise per liter, with the final price for consumers set at Rs255.63 paise per liter.

Similarly, the ex-refinery price of high-speed diesel is Rs154.06 paise per liter, while citizens are paying 258.64 per liter.

This hefty tax and margin structure raised concerns among Pakistanis, with many questioning the increasing financial burden on everyday consumers. The continued rise in fuel prices, due to these taxes and duties, is creating additional economic strain for the average Pakistani.

Petrol Price in Pakistan

New Petrol Price in Pakistan from March 16, 2025