Petrol consumers in Pakistan are currently paying close to Rs124 per litre in taxes and levies, a figure that reportedly exceeds the actual base price of the fuel itself. The breakdown includes petroleum levy, customs duty, and sales tax, which together make up a significant portion of the final retail price.
Fuel prices in the country are regulated by the Oil and Gas Regulatory Authority, which revises rates periodically based on global oil trends and exchange rate movements. While international crude prices fluctuate, domestic taxation remains a major driver of retail fuel costs.
The high tax component has a direct impact on transport fares and logistics expenses. As fuel becomes more expensive, transporters pass the additional cost on to consumers. This leads to higher prices for food, medicines, and other essential goods. For households already struggling with inflation, rising fuel charges add further strain to monthly budgets.
Businesses, especially those reliant on supply chains and delivery networks, also face mounting operational costs. Small and medium enterprises often find it difficult to absorb these expenses, which can reduce profit margins and slow economic activity.
Economists argue that while fuel taxes are an important source of government revenue, the growing reliance on petroleum levies increases the overall cost of living. With inflationary pressures persisting, calls for tax relief on petrol are likely to intensify in the coming months as consumers seek relief from sustained price hikes.
