ISLAMABAD: Details of the petroleum pricing structure have revealed that a significant portion of petrol and high-speed diesel prices is being collected in the form of taxes, levies and distribution margins, according to official documents.
The information disclosed that on the sale of one litre of petrol, Rs118.76 is being recovered by the government and its agencies in the shape of different taxes, levies, and marketing margins. As far as high-speed diesel is concerned, Rs110.65 is being recovered from each litre.
The base price of petrol has been worked out at the rate of Rs178.77 per litre, while consumers are paying Rs297.53 for each litre in the retail market. These figures include the following amounts:
Rs70.36 petroleum levy
Rs5 climate change support levy
Rs19.33 customs duty
Rs6.86 inland freight equalization margin
Rs7.87 oil marketing companies’ margin
Rs8.64 dealers’ margin
The ex-refinery price of high-speed diesel has been worked out at Rs198.85 per litre, while the consumer price has been fixed at Rs309.50 per litre.
It should be noted that the total tax burden contributes a lot towards the final retail prices of the petroleum products.
The disclosure comes at a time when fuel prices have been of great significance to customers as well, owing to the fact that transport and commodity prices are directly linked to those of fuel.
Govt Announces Cut in Petrol Price, Notification Issued
Earlier, the federal government has announced a reduction in the prices of petroleum products, providing relief to the public.
According to a notification issued by the Ministry of Energy (Petroleum Division), the new prices will be applicable from July 4, 2026.
According to the notification, the price of motor spirit (petrol) has been reduced by Rs 1.97 per liter, after which the new price of petrol has been fixed at Rs 297.53 per liter, while earlier petrol was being sold at Rs 299.50 per liter.
Similarly, the price of High Speed Diesel (HSD) has also been reduced by Rs 1.97 per liter. The new price of diesel has been fixed at Rs 309.50 per liter, while earlier its price was Rs 311.47 per liter.
According to the Ministry of Energy, the new prices of petroleum products will be applicable from July 4, 2026** for the next week. The notification issued by the government states that the price revision has been made keeping in mind the current market situation.
