Petrol, Diesel prices much higher than actual cost: Report reveals

ISLAMABAD: Currently, petrol is Rs 297.53 and diesel is Rs 309.50 per liter, but the actual price is much lower than this.

After a slight reduction in the prices of petroleum products last week, the government has increased the climate support levy on petrol and diesel. The public is burdened by the burden of tax duties on petroleum products.

Currently, petrol is Rs 297.53 per liter and diesel is Rs 309 per liter. However, the current price also includes several types of taxes from the government, which if deducted, its actual price is much lower than this.

Find out the actual price and taxes of petrol, high-speed diesel, light diesel and kerosene.

Petrol

According to the petroleum product prices effective from July 4, 2026, the ex-refinery price of petrol is Rs 179.47 per liter.

This includes Petroleum Development Levy of Rs 8.64, Petroleum Levy of Rs 70.36 and Climate Support Levy of Rs 5.

In addition, Customs Duty Freight Margin of Rs 19.33, Oil Companies Margin of Rs 6.86, Dealers Margin of Rs 7.87 and Rs 8.64 are also included.

GST on petrol is zero, however, the total tax is being collected at Rs 94.69 per liter, which is 32% of the current per liter price of petrol of Rs 297.53.

High Speed ​​Diesel

The ex-refinery price of High Speed ​​Diesel is Rs 199.06 while it is being sold at Rs 309.50 per liter.

High-speed diesel is being charged a petroleum development levy of Rs 70.82 and a climate support levy of Rs 5.

In addition, there is a customs duty of Rs 15.68, freight margin of Rs 2.43, oil companies’ margin of Rs 7.87 and dealers’ margin of Rs 8.64.

GST is also zero on this while the total tax is being charged at Rs 91.56 per liter, which is 30 percent of the current price.

Kerosene

Kerose oil is mostly used as fuel in homes. Its current price per liter is Rs 231.14. However, its ex-refinery price is Rs 200.91 per liter.

Kerosene includes a freight margin of Rs 8.29, oil companies’ margin of Rs 1.58 and petroleum levy of Rs 20.36. There is also zero GST on this while the total tax is Rs 20.36 per liter i.e. 9 percent.

Light Diesel

The current price of light diesel is Rs 195.42 per liter while its ex-refinery price is Rs 172.67 per liter.

A tax of Rs 15.84 per liter is being collected on light diesel including Rs 5.36 freight margin, Rs 1.61 oil companies margin and Rs 15.84 petroleum levy, which is 8 percent of the current price.