Pakistan's Fuel Price Breakdown: How Much Tax and Levy Are You Paying Per Litre?

Every time motorists refuel their vehicles, they pay much more than the actual cost of the fuel itself. Official documents have revealed that a significant portion of the retail price of both petrol and high-speed diesel consists of government levies, taxes, and various industry margins.

Here's a closer look at how the price of every litre is calculated.

Petrol Price Breakdown

According to the official documents, the base cost of one litre of petrol is Rs. 178.77, while the retail price has been fixed at Rs. 297.53 per litre.

A total of Rs. 118.76 per litre is added through government levies, taxes, and industry margins.

Petroleum Levy: Rs. 70.36 per litre
Climate Support Levy: Rs. 5.00 per litre
Customs Duty: Rs. 19.33 per litre
Inland Freight Equalization Margin (IFEM): Rs. 6.86 per litre
Oil Marketing Companies (OMCs) Margin: Rs. 7.87 per litre
Dealers' Margin: Rs. 8.64 per litre

High-Speed Diesel Price Breakdown

The documents also reveal that the base cost of one litre of high-speed diesel is Rs. 198.85, while the consumer price has been fixed at Rs. 309.50 per litre.

Consumers pay an additional Rs. 110.65 per litre through government levies, taxes, and various industry margins.

Fuel Price Comparison

Fuel Type	Base Cost (Rs.)	Retail Price (Rs.)	Levies, Taxes & Margins (Rs.)
Petrol	178.77	297.53	118.76
High-Speed Diesel	198.85	309.50	110.65

Key Takeaways

The base cost of petrol is Rs. 178.77 per litre, but consumers pay Rs. 297.53.
Government levies, taxes, and margins add Rs. 118.76 to every litre of petrol.
The base cost of high-speed diesel is Rs. 198.85 per litre, while the retail price is Rs. 309.50.
High-speed diesel includes Rs. 110.65 per litre in levies, taxes, and industry margins.

Conclusion

The official pricing documents provide a detailed picture of Pakistan's fuel pricing structure. While the base cost of petrol and high-speed diesel remains considerably lower, government levies, customs duty, climate support levy, freight adjustments, and distribution margins significantly increase the final amount paid by consumers at fuel stations.