Consumers in Pakistan are paying a significant portion of petrol prices in the form of taxes and profit margins, which account for around 46% of the total cost, according to an official document.
The disclosure comes a day after the government announced a sharp increase in fuel prices amid disruptions in the global oil supply chain due to the ongoing conflict in the Middle East.
At a press conference on Thursday, Petroleum Minister Ali Pervaiz Malik, alongside Finance Minister Muhammad Aurangzeb, announced an increase of Rs137.23 per litre in petrol prices, bringing the new rate to Rs458.41 per litre. The price of high-speed diesel also rose by Rs184.49 per litre to Rs520.35 per litre.
Official documents detailing the pricing structure show that petrol consumers are paying approximately Rs211.26 per litre in taxes and profit margins alone.
The ex-refinery price of petrol stands at Rs247.15 per litre. The breakdown includes a petroleum levy of Rs160.61 per litre, customs duty of Rs24.12, and a climate support levy of Rs2.5. Additional charges include Rs7.52 per litre as inland freight margin, Rs7.87 as profit for oil marketing companies, and Rs8.64 as dealer commission.
In contrast, taxes and profit margins on diesel amount to Rs59.12 per litre, representing 11.36% of the total price. The ex-refinery price of diesel is Rs461.23 per litre.
Unlike petrol, no petroleum levy is applied to diesel. However, its pricing includes Rs35.74 per litre in customs duty, Rs4.37 as inland freight margin, Rs7.87 as oil marketing company profit, Rs8.64 as dealer commission, and Rs2.5 as climate support levy.
The increase in fuel prices reflects rising global oil market pressures amid geopolitical tensions affecting supply chains.