How Much Tax Do Pakistanis Pay on Petrol and Diesel? Complete Breakdown & Analysis shows that fuel prices in Pakistan carry a heavy tax burden. The federal government fuel policy, excise duty on fuel, and customs duty on petrol and diesel make up the majority of the cost. Consumers’ cost burden has increased sharply over the past few years, making it essential to understand the price per litre breakdown.
Currently, petrol includes an excise duty of around Rs 34 per litre and a customs duty of Rs 12. Diesel has slightly lower excise duty but faces an additional light diesel oil tax. The climate support levy and kerosene oil levy also add to the overall tax burden. Oil marketing company margins and petroleum dealers’ charges further influence the final price at the pump. Freight charges on fuel and global oil rates impact domestic fuel trends, so any increase in petroleum prices often reflects both market conditions in Pakistan and international fluctuations.
High-octane fuel taxation and petroleum product price hikes are reviewed periodically by the Ministry of Petroleum and the Petroleum Division of Pakistan. These reviews aim to balance government revenue and consumer affordability. For example, a Rs per litre tax calculation in recent months shows petrol prices exceeding Rs 380 per litre, while diesel costs around Rs 325 per litre, highlighting the heavy taxation impact.
In conclusion, understanding How Much Tax Do Pakistanis pay on Petrol and Diesel? Complete Breakdown & Analysis is crucial for consumers and policymakers. Taxes, levies, and margins make up more than half of the fuel cost. Awareness of diesel and petrol rate changes helps citizens anticipate future fuel price increases.
