How much are Pakistanis paying in taxes, profit margins per litre of petrol?

Consumers are paying a substantial portion of petrol cost in the form of taxes and profit margins, accounting for around 46% of the total price, according to an official document from the Ministry of Energy.

The revelations come just a day after the government announced a sharp hike in petrol and diesel prices, as the global oil supply chain takes a hit from the ongoing war in the Middle East.

Addressing a press conference along with Finance Minister Muhammad Aurangzeb on Thursday, Petroleum Minister Ali Pervaiz Malik announced an increase of Rs137.23 per litre in the price of petrol, setting the new rate at Rs458.41 per litre.

Similarly, high-speed diesel price jumped to Rs520.35 per litre after a Rs184.49 per litre increase.

Meanwhile, the official document showed that petrol consumers were being charged about Rs211.26 per litre in levies and profit margins alone.

The documents outline the pricing structure, showing the ex-refinery price of petrol at Rs247.15 per litre.

According to the details, a petroleum levy of Rs160.61 per litre is imposed on petrol, alongside Rs24.12 in customs duty and Rs2.5 under the climate support levy. Inland freight margin stands at Rs7.52 per litre.

The pricing breakdown further includes Rs7.87 per litre as profit for oil marketing companies and Rs8.64 as commission for petrol pump dealers.

In comparison, diesel consumers pay Rs59.12 per litre in total taxes and profit margins, accounting for 11.36% of the price.

The ex-refinery price of diesel is documented at Rs461.23 per litre. Unlike petrol, the petroleum levy on diesel is zero, according to the document.

However, diesel prices include Rs35.74 per litre in customs duty, Rs4.37 as inland freight margin, Rs7.87 OMCs' profit, Rs8.64 dealers’ commission, and Rs2.5 climate support levy.