A recent report has revealed that almost one-third of the price Pakistanis pay for fuel is made up of government taxes and levies. This means that for every liter of petrol or diesel, a big chunk of the cost goes directly to the government rather than the fuel itself.
According to the report, petrol buyers pay Rs94.89 in taxes on each liter. This amount is divided into different charges: Rs. 14.37 as customs duty, Rs. 78.02 as petroleum levy, and Rs. 2.50 under the climate support levy.
The situation is similar for diesel users, who pay Rs. 95.35 in taxes per liter. The breakdown includes Rs. 15.84 as customs duty, Rs. 77.01 as petroleum levy, and another Rs. 2.50 for climate support.
These taxes have become a significant part of fuel prices, making petrol and diesel more expensive for the average consumer. The petroleum levy, in particular, is the largest contributor, taking up more than three-fourths of the total tax amount.
Experts believe that while such levies are meant to support government revenue and climate initiatives, they also put pressure on ordinary citizens who rely heavily on fuel for daily transport and business operations. Rising global oil prices combined with high local taxes often lead to inflation, affecting the cost of essential goods and services.
The report highlights that with taxes forming such a large share of fuel prices, any change in levies directly impacts household budgets. For many Pakistanis, this raises concerns about affordability and the long-term sustainability of fuel pricing policies.
