Pakistan petrol users paying Rs145 per litre in taxes: report

ISLAMABAD – The consumers in Pakistan are paying nearly Rs145 per litre in taxes on petrol, a report based on official data from the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Energy revealed on Wednesday. An analysis by Dubai-based consultancy Mountain Ventures said that the findings are based on government pricing data effective from May 9, 2026. The report stated that the maximum depot price of petrol stands at Rs414.78 per litre, out of which Rs144.26 per litre—around 34.8 per cent of the total price—comprises taxes and levies. The Petroleum Development Levy (PDL) makes up the largest share, with Rs117.41 per litre charged under this head. Other components include Rs24.35 per litre customs duty and Rs2.50 per litre climate support levy. The analysis further showed that the actual ex-refinery cost of petrol is Rs246.76 per litre, representing 59.5 per cent of the retail price. Marketing and distribution costs add another Rs23.76 per litre, including Inland Freight Equalization Margin (IFEM), oil marketing companies’ margin, and dealers’ commission. For high-speed diesel (HSD), the maximum depot price has been set at Rs414.58 per litre, with the base product cost at Rs314.16 per litre, or 75.8 per cent of the total price. Taxes on diesel stand at Rs76.16 per litre, or 18.4 per cent of the price, including PDL, customs duty, and climate support levy. The report highlighted a clear disparity in tax burden, noting that petrol is taxed significantly higher than diesel. Consumers are currently paying around Rs68 more per litre in taxes on petrol compared to diesel, mainly due to the higher Petroleum Development Levy on petrol. PSX Today: KSE-100 Index Jumps Over 600 Points in Early Trading