Here's how much taxes Pakistanis pay on petrol

ISLAMABAD: Pakistani consumers are paying massive taxes and duties on petroleum products, here’s the detailed breakdown of the taxes.

According to a document acquired by ARY News, for petrol, taxes and duties amount to Rs101.49 per litre, including a petroleum development levy (PDL) of Rs75.52 per litre, a newly introduced climate levy of Rs2.50 per litre effective July 1 (today), a freight margin of Rs6.98 per litre, an oil company margin of Rs7.87 per litre, and a dealer margin of Rs8.64 per litre.

The ex-refinery price of petrol stands at Rs165.30 per litre. For high-speed diesel (HSD), taxes and duties total Rs95.74 per litre, comprising a PDL of Rs74.51 per litre, a climate levy of Rs2.50 per litre, a freight margin of Rs2.09 per litre, an oil company margin of Rs8.00 per litre, and a dealer margin of Rs8.64 per litre. The ex-refinery price for diesel is Rs177.24 per litre.

Earlier today, Pakistan imposed a climate support levy on petroleum products on the International Monetary Fund’s (IMF) demand.

Also read: Petrol price in Pakistan increase for next fortnight

With the commencement of the new fiscal year 2025-26, the federal government enforced new taxes on petroleum products in line with the International Monetary Fund’s (IMF) climate financing conditions.

A fresh “Climate Support Levy” of Rs2.50 per litre imposed on petrol, diesel, and kerosene. This levy has been adjusted by reducing the previously applicable Petroleum Development Levy (PDL).

It may be noted that the federal government increased petrol prices for the next fortnight, pushing the petrol price up by Rs8.36 per litre.

According to a notification issued by the Pakistan Ministry of Finance, the petrol price had been increased by Rs14.80 per litre, bringing the new petrol price to Rs266.89 per litre.