Report: Government earns Rs 145 per liter of petrol

ISLAMABAD: According to an analysis by Mountain Ventures based on official data from the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Energy, consumers in Pakistan are paying about Rs 145 in taxes per liter on petrol.

As per the prices effective from May 9, 2026, the maximum depot price of petrol is Rs 414.78 per liter, of which Rs 144.26 or 34.8 percent consists of taxes and levies.

Mountain Ventures is a Dubai-based consultancy that works on energy, technology and market restructuring and publishes analytical reports related to various sectors.

The largest share of these taxes is the Petroleum Development Levy (PDL), and Rs 117.41 per liter is being collected as levy alone. In addition, customs duty is Rs 24.35 while climate support levy is Rs 2.50 per litre.

The actual cost of petrol is Rs 246.76 per litre, which is 59.5 per cent of the retail price. In addition, marketing and distribution costs are Rs 23.76 per litre (5.7 per cent), which includes Rs 7.25 inland freight equalisation margin (IFEM), Rs 7.87 oil marketing companies’ margin and Rs 8.64 dealers’ commission.

The maximum depot price for high-speed diesel (HSD) is Rs 414.58 per litre. In this, the actual cost of fuel is Rs 314.16 per litre, which is 75.8 per cent of the total price.

Taxes on diesel are Rs 76.16 per litre, which is 18.4 per cent of the total price. This includes Rs 42.60 PDL, Rs 31.06 customs duty and Rs 2.50 climate support levy.

Marketing and distribution costs are another Rs 24.27 per litre (5.8%), which includes Rs 7.76 i-FAME, Rs 7.87 oil marketing companies’ margin and Rs 8.64 dealers’ commission.

The figures reveal a significant difference in tax burden between petrol and diesel. Petrol is taxed almost twice as much as diesel and consumers are paying Rs 68 more tax per litre on petrol. This difference is mainly due to the higher Petroleum Development Levy on petrol.