Half of Petrol Pricing in Pakistan Attributed to Taxes and Margins: New Report
Synopsis
A recent report reveals that Pakistani consumers pay nearly **50%** of petrol prices in taxes and profit margins. This comes in the wake of a substantial price increase for both petrol and diesel, raising concerns over the government's fiscal policies.
Key Takeaways
50% of petrol prices in Pakistan are from taxes and margins.
Recent price hike sees petrol now at Rs 458.41 per litre.
Ex-refinery price of petrol is Rs 247.15 per litre.
Diesel prices also surged, reaching Rs 520.35 per litre.
Government scrutiny intensifies over fiscal policies affecting consumers.
New Delhi, April 4 (NationPress) Consumers in Pakistan are facing a staggering burden as nearly 50% of the retail price of petrol is attributed to government taxes and industry profit margins, as indicated by a confidential government document. This revelation comes shortly after a significant hike in the prices of both petrol and diesel, as reported by Geo News. During a press briefing, Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb announced a Rs 137.23-per-litre increase in petrol prices, bringing the retail cost to Rs 458.41 per litre.
Furthermore, high-speed diesel prices surged even more dramatically, rising by Rs 184.49 per litre to a new high of Rs 520.35. The price increases have been linked to disruptions in the global oil supply chain, largely due to ongoing conflicts in the Middle East.
The Ministry of Energy's pricing document reveals that the ex-refinery price of petrol is Rs 247.15 per litre, which is significantly lower than the Rs 211.26 added through taxes and profit margins.
Within the non-product costs, the petroleum levy alone constitutes Rs 160.61 per litre, followed by Rs 24.12 in customs duty and Rs 2.50 for climate support. Additionally, there’s a freight margin of Rs 7.52, while oil marketing companies (OMCs) earn Rs 7.87 in profits, and pump dealers receive a commission of Rs 8.64 per litre.
In contrast, the situation for diesel consumers is notably different. The ex-refinery price for high-speed diesel is Rs 461.23 per litre, and unlike petrol, diesel currently does not incur a petroleum levy. The combined taxes and margins on diesel amount to Rs 59.12 per litre, which is just 11.36% of the retail price, including Rs 35.74 in customs duties, Rs 4.37 for inland freight, Rs 7.87 in OMC profit, and Rs 8.64 for dealer commissions, plus the Rs 2.50 climate levy.
These disclosures have sparked renewed scrutiny regarding the government's fiscal strategy, as the tax and margin share for petrol is over four times that of diesel, even while prices for both fuels reach unprecedented levels.
Point of View
The impact on consumers is profound, raising questions about economic policy and fairness in fuel pricing.
NationPress
12 Jul 2026
Frequently Asked Questions
What is the current petrol price in Pakistan?
As of now, the petrol price in Pakistan is **Rs 458.41 per litre**.
How much of the petrol price is made up of taxes?
Approximately **Rs 211.26** of the petrol price is attributed to government taxes and margins.
What is the ex-refinery price of petrol?
The ex-refinery price of petrol is **Rs 247.15 per litre**.
Why did petrol prices increase recently?
The increase in petrol prices is primarily due to disruptions in the global oil supply chain caused by ongoing conflicts in the **Middle East**.
What are the tax components on diesel?
The taxes on diesel total **Rs 59.12 per litre**, which includes customs duties, freight, and profit margins.
