Petrol consumers paying nearly Rs145 per litre in taxes

Consumers in Pakistan are paying nearly Rs145 per litre in taxes and levies on petrol, according to an analysis based on official figures from Oil and Gas Regulatory Authority and the Ministry of Energy.

The analysis, published by Dubai-based consultancy Mountain Ventures, states that the maximum depot price of petrol effective from May 9, 2026, stands at Rs414.78 per litre. Out of this amount, Rs144.26 per litre — nearly 35 percent of the total price — consists of taxes, duties, and government levies.

The largest portion of the tax burden comes from the Petroleum Development Levy (PDL), under which consumers are paying Rs117.41 per litre. Additional charges include Rs24.35 in customs duty and Rs2.50 as climate support levy.

According to the report, the actual cost of petrol is Rs246.76 per litre, accounting for nearly 60 percent of the retail price. Marketing and distribution costs contribute another Rs23.76 per litre, including inland freight equalisation margin, oil marketing company margins, and dealer commissions.

Pressure Mounts On British Prime Minister As Political Crisis Deepens

For high-speed diesel (HSD), the maximum depot price has been set at Rs414.58 per litre. The actual fuel cost for diesel stands at Rs314.16 per litre, representing almost 76 percent of the total price.

Taxes on diesel amount to Rs76.16 per litre, significantly lower than the burden on petrol. These include Rs42.60 in Petroleum Development Levy, Rs31.06 in customs duty, and Rs2.50 in climate support levy.

The report highlights a major disparity in taxation between petrol and diesel, noting that petrol consumers are paying approximately Rs68 more in taxes per litre compared to diesel users. Analysts attribute this difference mainly to the substantially higher Petroleum Development Levy imposed on petrol.

The findings come amid continued public concern over rising fuel prices and increasing transportation costs across Pakistan.