Islamabad, Pakistan – Web Desk: A new report has revealed that rising petroleum prices in Pakistan are largely driven by heavy taxation and levies imposed by the government, along with additional charges from oil distribution companies.
According to the report, petrol prices are significantly affected by multiple components, with government taxes forming a major share of the final retail cost. Petrol alone carries approximately Rs 198 per litre in taxes and related charges.
The breakdown shows that petrol includes a petroleum levy of over Rs 117 per litre, customs duties, oil company margins, distribution costs, freight charges, and additional levies such as climate support taxes and exchange rate adjustments. The total retail price of petrol is estimated at around Rs 216 per litre.
Similarly, high-speed diesel is also heavily taxed, with total levies and charges exceeding Rs 113 per litre. The reported price of diesel stands at nearly Rs 301 per litre when all components are included.
The report highlights that government levies, customs duties, and distribution margins play a major role in determining fuel prices, alongside international oil premiums and currency fluctuations.
It further notes that the government collects around Rs 143 per litre on petrol, while oil distribution companies and related stakeholders also recover significant charges from consumers.
The findings have raised concerns over the increasing financial burden on consumers, as fuel prices continue to remain a key driver of inflation in the country.
