Nearly half of petrol price goes to taxes, official data reveals

KARACHI: Fresh details released by the Ministry of Energy show that a significant portion of fuel prices in Pakistan consists of taxes, duties, and margins, placing a heavy burden on consumers.

According to official documents, around 46 percent of the price of one litre of petrol is made up of taxes and profits. Citizens are paying approximately Rs211.26 in taxes on each litre of petrol, while the ex-refinery price stands at Rs247.15.

The breakdown reveals that petrol prices include Rs24.12 as customs duty, Rs7.52 as inland freight margin, Rs7.87 as profit for oil marketing companies, and Rs8.64 as commission for petrol pump dealers. In addition, a climate support levy of Rs 2.50 per litre is also part of the price.

For diesel, consumers are paying Rs59.12 per litre in taxes, while the ex-refinery price is significantly higher at Rs461.23. The diesel price includes Rs35.74 in customs duty, Rs4.37 as inland freight margin, Rs7.87 as marketing company profit, and Rs8.64 as dealer commission, along with a Rs2.50 climate support levy.

The data highlights the structure of petroleum pricing in the country, where a large share of the final cost paid by consumers comes from government-imposed taxes and supply chain margins.

The revelations come at a time when fuel prices have surged sharply, intensifying public concerns over rising inflation and the increasing cost of living.