Petrol Taxes in Pakistan Reach Nearly ₨145 Per Litre

A recent market analysis indicates that consumers in Pakistan are bearing approximately ₨145 per litre in cumulative taxes and statutory levies embedded within petrol prices, with the Petroleum Development Levy constituting the dominant component of the retail pricing structure, according to The News, which cited data compiled by Mountain Ventures using official figures from the Oil and Gas Regulatory Authority and the Ministry of Energy.

The Dubai-based advisory firm Mountain Ventures, specialising in energy and commodity market assessments, prepared its breakdown using fuel pricing data effective May 9, 2026. The analysis shows that the maximum depot price of petrol stood at ₨414.78 per litre, of which ₨144.26 (approximately 35%) represented government-imposed taxes and levies.

Within this structure, the Petroleum Development Levy alone accounted for ₨117.41 per litre, forming the largest share of the fiscal burden on petrol consumers. Additional statutory charges included ₨24.35 per litre in customs duty and ₨2.50 per litre under the Climate Support Levy framework.

The underlying product cost was estimated at ₨246.76 per litre, representing nearly 60% of the final retail price. Distribution-related components, including marketing and logistics, added ₨23.76 per litre, comprising ₨7.25 under the Inland Freight Equalisation Margin (IFEM), ₨7.87 as oil marketing company margins, and ₨8.64 as dealer commissions.

In the case of high-speed diesel, the maximum depot price was recorded at ₨414.58 per litre. The tax burden on diesel was comparatively lower, amounting to ₨76.16 per litre or around 18% of the retail price.

This included ₨42.60 per litre under the Petroleum Development Levy, ₨31.06 in customs duty, and ₨2.50 under the Climate Support Levy. The base fuel cost for diesel was significantly higher at ₨314.16 per litre, accounting for nearly 76% of the final retail price, while distribution and marketing charges remained at ₨24.27 per litre.

The comparative assessment further indicates that petrol consumers are effectively paying approximately ₨68 per litre more in taxes than diesel users, primarily due to the substantially higher Petroleum Development Levy imposed on petrol.