The federal government is currently collecting Rs. 118.76 per litre in taxes, levies and industry margins on petrol, while Rs. 110.65 per litre is being charged on high-speed diesel.
The base cost of petrol stands at Rs. 178.77 per litre. That’s 40 percent over the retail price of Rs. 297.53 per litre.
A substantial portion of the retail prices of petrol and diesel consists of government levies, duties and distribution margins rather than the underlying cost of the fuel itself.
The difference includes Rs. 70.36 in petroleum levy, Rs. 5 in climate support levy, Rs. 19.33 in customs duty, Rs. 6.86 as Inland Freight Equalization Margin (IFEM), Rs. 7.87 as the oil marketing companies’ margin, and Rs. 8.64 as the dealers’ margin.
For high-speed diesel (HSD), the base cost is Rs. 198.85 per litre, while consumers are paying Rs. 309.50 per litre.
The gap of Rs. 110.65 per litre comprises petroleum levy, customs duty, climate support levy, freight adjustments and margins for oil marketing companies and fuel dealers.
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