Fuel Taxes Drive Up Costs: Petrol Rs139, Diesel Rs116 More Expensive Than Base Price

ISLAMABAD: Petrol and high-speed diesel prices are significantly higher than their basic costs due to taxes, levies and various margins, with consumers paying around Rs139 more per litre for petrol and Rs116 more for diesel.

According to a report published by Daily Jang, official documents show that the basic cost of a litre of petrol is Rs197.69, while its current retail price is Rs327.62 per litre, creating a difference of Rs129.93 between the basic cost and the price paid by consumers.

The documents show that petrol carries a petroleum levy of Rs80 per litre, a climate support levy of Rs5, customs duty of Rs21.24, inland freight equalisation margin of Rs7.48, oil marketing companies’ margin of Rs7.87 and dealers’ margin of Rs8.64.

For high-speed diesel, the basic cost is Rs264.76 per litre, while the retail price has been fixed at Rs380.86, resulting in a difference of Rs116.10 per litre.

According to the documents, the charges included in the price of high-speed diesel comprise a petroleum levy of Rs74.28 per litre, climate support levy of Rs5, customs duty of Rs15.68, inland freight equalisation margin of Rs4.63, oil marketing companies’ margin of Rs7.87 and dealers’ margin of Rs8.64.

The figures indicate that government levies and taxes, along with freight and marketing margins, constitute a significant portion of the retail prices of petrol and diesel, increasing the amount consumers pay over their respective basic costs.