Did you know how much taxes consumers are paying on per litre fuel in Pakistan?

Pakistani consumers are bearing the brunt of massive taxes and duties on petroleum products, with  official documents revealing that more than Rs100 per litre on petrol goes directly into levies, margins, and duties.

For petrol, the total tax and duty burden amounts to Rs101.49 per litre, broken down as follows:

Petroleum Development Levy (PDL): Rs75.52

Climate Levy (effective July 1): Rs2.50

Freight Margin: Rs6.98

Oil Company Margin: Rs7.87

Dealer Margin: Rs8.64

The ex-refinery price of petrol is Rs165.30 per litre, meaning a significant portion of the retail price is comprised of taxes and margins.

For high-speed diesel (HSD), total taxes and duties amount to Rs95.74 per litre, including:

PDL: Rs74.51

Climate Levy: Rs2.50

Freight Margin: Rs2.09

Oil Company Margin: Rs8.00

Dealer Margin: Rs8.64

The ex-refinery price of diesel stands at Rs177.24 per litre.

Earlier today, the government imposed a new climate support levy on petroleum products in compliance with International Monetary Fund (IMF) conditions linked to climate financing.

With the start of the new fiscal year 2025-26, these additional levies have taken effect, further burdening consumers already struggling with high fuel costs.