Petrol Price is Rs. 220, Everything Above That Is Taxes and OMC Profits

Former finance minister and Awaam Pakistan Party Secretary General Miftah Ismail has claimed that petrol costs around Rs. 220 per litre by the time it reaches Karachi Port, with the remaining retail price made up of government taxes and the profit margins of oil companies.

Speaking on ARY News’ program Sawal Yeh Hai, Ismail said the Rs. 220 per litre figure includes import-related costs and duties. According to him, the amount consumers pay above that level primarily consists of taxes and margins earned by Oil Marketing Companies (OMCs).

He alleged that the government has consistently protected the profit margins of OMCs while imposing a heavy tax burden on consumers. He also questioned proposals to reduce petrol prices for motorcycle riders, saying such suggestions are often rejected over concerns about Pakistan’s commitments to the International Monetary Fund (IMF).

Ismail claimed that nearly 60 percent of the country’s petrol is consumed by motorcycle riders, who, according to him, are effectively paying around Rs. 120 per litre in taxes. He argued that imposing such a high tax burden on low-income consumers inevitably increases the cost of living.

The former finance minister also criticized the government’s move to introduce daily petroleum price revisions, arguing that true deregulation would have allowed prices to be determined by market forces rather than simply changing the frequency of price adjustments.

He alleged that the government increased petrol prices midway through a pricing period, allowing oil companies to benefit despite existing prices remaining applicable until the middle of the month.

Separately, the Petroleum Division announced that petroleum prices will remain unchanged until July 27. Under the current pricing, petrol will continue to sell at Rs. 335.18 per litre, while high speed diesel will remain at Rs. 383.46 per litre for Sunday and Monday.