ISLAMABAD – Pakistani government increased petroleum levy on petrol despite continued decline in international oil prices, leaving the public without the substantial fuel price relief many had anticipated.
Under latest weekly revision of petroleum product prices, the government raised the petroleum levy on petrol by Rs. 6.22 per litre, taking the total levy to Rs. 70.36 per litre.
Consumers are paying Rs. 118.76 per litre in taxes, government levies, and industry margins on petrol, according to official pricing details, even though the actual cost of the fuel stands at Rs. 178.77 per litre. This brings the retail price of petrol to Rs. 297.53 per litre.
| Category | Petrol | Diesel |
| Actual Cost per Litre | Rs. 178.77 | Rs. 198.85 |
| Retail Price per Litre | Rs. 297.53 | Rs. 309.50 |
| Total Taxes, Levies & Margins | Rs. 118.76 | Rs. 110.65 |
| Petroleum Levy (Current) | Rs. 70.36 | Rs. 70.82 |
| Latest Change in Petroleum Levy | +Rs. 6.22/L | −Rs. 6.22/L |
| Climate/Carbon Support Levy | Rs. 5.00 | Rs. 5.00 |
| Customs Duty | Rs. 19.33 | — |
| Inland Freight Equalization Margin (IFEM) | Rs. 6.86 | Included in pricing |
| Oil Marketing Companies (OMCs) Margin | Rs. 7.87 | Included in pricing |
| Dealers’ Margin | Rs. 8.64 | Included in pricing |
The price breakdown shows that Rs. 70.36 per litre is charged as petroleum levy, while an additional Rs. 5 per litre is collected under the Climate Support Levy. Consumers also pay Rs. 19.33 per litre in customs duty.
Apart from taxes and levies, the retail price includes Rs. 6.86 per litre under the Inland Freight Equalization Margin (IFEM), Rs. 7.87 per litre as the oil marketing companies’ margin, and Rs. 8.64 per litre as the dealers’ margin.
The official document further states that the actual cost of high-speed diesel (HSD) is Rs. 198.85 per litre, while its consumer price has been fixed at Rs. 309.50 per litre.
Energy experts say a significant share of petroleum prices now consists of taxes, government levies, and distribution margins, increasing the overall financial burden on consumers despite fluctuations in international oil prices.
The decision comes at a time when falling global crude oil prices had fueled expectations of a significant reduction in domestic fuel prices. However, instead of passing on the full benefit to consumers, the government opted to increase the levy on petrol.
The petroleum levy on high-speed diesel has been reduced by Rs. 6.22 per litre, bringing it down to Rs. 70.82 per litre.
Meanwhile, the petroleum levy on kerosene oil remains unchanged at Rs. 20.36 per litre, while the carbon levy of Rs. 5 per litre on petroleum products has also been retained.
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