A detailed breakdown of petroleum pricing in Pakistan has revealed that a significant portion of the retail price of petrol and high-speed diesel consists of taxes, duties, and profit margins, raising renewed debate over fuel affordability for consumers.
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According to official sources, the ex-refinery price of petrol is recorded at Rs246.31 per litre before the addition of taxes and distribution costs. However, by the time it reaches consumers, the price increases sharply to Rs399.86 per litre, reflecting multiple layers of taxation and operational charges.
The data shows that customs duty on petrol stands at Rs23.72 per litre, while inland freight margins account for Rs7.32 per litre. Oil marketing companies receive a margin of Rs7.87 per litre, and petrol pump dealers earn a commission of Rs8.64 per litre for distribution and retail services.
In addition, the petroleum levy contributes Rs103.50 per litre, while a climate support levy adds another Rs2.50 per litre. Together, these taxes and margins significantly raise the final cost paid by consumers.
Officials further revealed that a total of approximately Rs153.55 per litre is collected in taxes, margins, and related charges on petrol alone. For high-speed diesel, the figure stands at around Rs116.46 per litre.
The ex-refinery price of high-speed diesel is reported at Rs283.12 per litre, while the final consumer price reaches approximately Rs399.58 per litre after adjustments.
The figures highlight the substantial difference between base fuel costs and retail prices in the country, driven largely by government levies, distribution expenses, and market margins.
Economists say the structure reflects both revenue generation needs and supply chain costs, but it continues to place a heavy burden on consumers already facing inflationary pressures.
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The disclosure has sparked discussions over fuel pricing transparency and the need for policy reforms to balance fiscal requirements with public affordability in the energy sector.