Heavy government levies and industry margins account for a major share of the fuel prices consumers pay in Pakistan.
This has pushed petrol (MS) and high-speed diesel (HSD) prices to elevated levels despite the absence of sales tax, official soruces told ProPakistani.
Sources said that a total of Rs. 124.95 per litre is being charged in the form of taxes and margins on petrol, while Rs. 117.15 per litre is added to the price of high-speed diesel under the same heads.
Currently, the government has imposed a petroleum levy of Rs. 84.40 per litre on petrol and Rs. 76.21 per litre on high-speed diesel. In addition, customs duty of Rs. 13.31 per litre is included in petrol prices, while Rs. 15.68 per litre is charged as customs duty on high-speed diesel.
A climate support levy of Rs. 2.50 per litre is being applied to both petrol and diesel. Consumers are also paying a dealer commission of Rs. 8.64 per litre on both fuels.
Oil marketing companies earn a margin of Rs. 7.87 per litre on petrol, while the inland freight equalization margin (IFEM) adds Rs. 8.23 per litre to petrol prices. For high-speed diesel, the IFEM stands at Rs. 6.25 per litre.
Despite the heavy tax burden, no sales tax is currently being charged on petrol or diesel, yet.
Before the application of duties and levies, the base price of petrol is Rs. 133.22 per litre. However, the final consumer price has reached Rs. 258.17 per litre.
Similarly, the actual price of high-speed diesel is Rs. 158.55 per litre, but consumers are paying Rs. 275.70 per litre at the pump due to government taxes and margins.