Recent Price Increase for Petrol Products Was Caused by New Taxes

The government is planning to collect Rs. 55 billion as taxes with the sale of petroleum products (POL) this month.

A local media report has cited sources in the Petroleum Division saying that the actual reason behind the government increasing the petrol prices is actually the additional taxes on POL.

They reject the government’s claim that the increase in prices of petrol and high-speed diesel (HSD) is because of the rising oil prices in the international market.

The sources say that petrol and diesel prices have risen drastically because of the imposition of additional taxes. The price of diesel can be decreased by Rs. 4 per liter, based on the prices in the global oil market.

In fact, the government is collecting around Rs. 40 per liter on the sale of POL products under the category of general sales tax, regulatory duty, petroleum levy, and margins.


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Such a high rate of petroleum levy is unprecedented in the country’s history, said the sources. They added that the Federal Board of Revenue (FBR) will be responsible for a Rs. 350 billion shortfall in revenue while the public is going to bear the burden.

Petroleum Levy

A notification issued by the Ministry of Energy (petroleum division), dated April 30, 2019, has revealed the rate of petroleum levy for sales of POL products for direct sales and through retail outlets.

As per the notification, the levy on petrol for sales through retail outlets is Rs. 14.15 and for Rs. 17.62 per liter direct sales. The levy on diesel (HSD) for direct sales and sales via retail outlets is at Rs. 5.98 per liter.

Furthermore, the levy on light diesel oil (LDO) through retail outlets and direct sales is Rs. 2.58 per liter while the levy on the high-octane blended component (HOBC) is at Rs. 17.62 per liter and Rs. 14.15 per liter for direct sales and retail outlet sales respectively.

Via: Profit


  • In 2013 $1 was of PKR 106 and crude oil price was $111 = PKR 11,766 (111×106)
    Today $1 is PKR 142 and crude oil price is $68 = PKR 9,656 (68×142)

    If barrel price is almost PKR 2100 cheap then why the petrol prices are same as 2013?

    Fact is government put highest amount of tax on petrol in last 18 years!

  • GST increased from 8 to 17% on petrol. Petroleum taxes raised not actual price.
    Price in international market does not hundred percent impact Pak bcz 40% oil is obtained from within country. It is just to make stupid awam “mamoon” yet again.

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