Web Desk: Following the recent increase in fuel prices, a detailed breakdown reveals that taxes and levies account for a significant portion of petrol costs in Pakistan, while diesel remains comparatively lightly taxed.
According to official figures, the base cost of petrol, including the import price, inland freight, and margins for oil marketing companies and dealers, totals approximately Rs. 295.30 per litre. Taxes and levies add roughly Rs. 163.11 per litre, pushing the final retail price to Rs. 458.41 per litre. Key components of the tax burden include the petroleum levy of Rs. 160.61, climate support levy of Rs. 2.50, customs duties, exchange adjustments, and other charges.
In contrast, diesel’s base cost amounts to around Rs. 517.34 per litre, with only Rs. 2.50 per litre added in climate levy. As a result, the final diesel price stands at Rs. 520.35 per litre, reflecting the lighter tax load compared to petrol.
Experts point out that the petroleum levy constitutes the largest portion of petrol costs, making taxes the primary driver of higher retail prices. This disparity explains why petrol prices appear more heavily burdened despite similar underlying import and operational costs.
The analysis highlights the impact of fiscal measures on consumer fuel prices and sheds light on the government’s reliance on levies as a revenue source amid global energy market fluctuations.
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