Pakistan’s Fuel Prices Now Carry More Hidden Charges Than Your Electricity Bill

The Prime Minister on Thursday sanctioned an increase of Rs. 19.39 per litre in the price of diesel and Rs. 6.51 per litre for petrol. The price of diesel is now Rs. 399.58 per litre and petrol Rs. 399.86 per litre.

After removal of tv fees, an average electricity bill in Pakistan has fixed charges, unit costs, sales tax and other adjustments. Fuel prices now have much more.

Consumers are paying Rs. 153.55 per liter in combined taxes, levies, and distribution margins on petrol.

The largest component comes from the petroleum levy, which stands at approximately Rs. 103.50 per liter, making it the single biggest contributor to petrol prices.

A customs duty of Rs. 23.72 per liter is being collected, while a Rs. 2.50 climate support levy has also been added.

Beyond taxation, several operational margins further increase the retail price. Documents show Rs. 17.14 per liter is charged as inland freight margin for transportation, while oil marketing companies receive around Rs. 7.87 per liter in profit.

Petrol pump dealers earn an additional Rs. 8.64 per liter as commission.

Overall, taxes account for roughly 32 percent of the final petrol price, meaning a substantial share of what motorists pay does not reflect the actual cost of fuel itself but government revenues and supply-chain charges.

A similar structure applies to diesel pricing.

Consumers pay approximately Rs. 116.46 per liter in combined taxes, levies, and margins on diesel. This includes about Rs. 51.62 per liter in customs duty, a Rs. 28.69 petroleum levy, and the same Rs. 2.50 climate support levy.

Freight margins, oil marketing company profits, and dealer commissions, including Rs. 4.37 for inland freight, Rs. 7.87 company profit, and Rs. 8.64 dealer margin, also add to the final price.

Taxes represent around 21 percent of diesel prices, lower than petrol but still a big burden on transportation and industrial sectors.