ISLAMABAD – Pakistanis are once again feeling the pinch at the fuel pump, with official documents revealing that more than Rs125 per litre of petrol goes toward taxes, levies, and margins rather than the fuel itself, revealing the gap between fuel’s actual cost and the price motorists pay at the pump.

As per data, the base cost of petrol stands at Rs209.76 per litre; consumers are charged Rs335.18 per litre, with Rs125.95 added through a combination of petroleum levies, customs duty, freight adjustments, and industry margins.

The single biggest component is the Rs80 Petroleum Development Levy (PDL), followed by a Rs5 Climate Support Levy. Petrol prices also include Rs17.28 in customs duty, Rs7.16 under the Inland Freight Equalization Margin (IFEM), Rs7.87 as the Oil Marketing Companies (OMCs) margin, and Rs8.64 allocated to dealers.

High-speed diesel (HSD) follows same pattern. The base cost is Rs270.92 per litre, yet the government-fixed retail price stands at Rs383.46 per litre, leaving consumers to pay an additional Rs112.54 per litre in levies, duties, and margins.

The diesel price includes Rs70.82 Petroleum Development Levy, Rs5 Climate Support Levy, Rs15.68 in customs duty, Rs4.53 under IFEM, Rs7.87 as the OMC margin, and Rs8.64 as the dealer margin.

The figures show a major portion of what consumers pay at fuel stations does not reflect the actual cost of the fuel itself but consists of government-imposed levies, taxes, and distribution-related charges. As fuel remains a key driver of inflation and transportation costs, the pricing breakdown is likely to intensify public debate over the government’s revenue strategy and the burden on consumers.

Petrol up Rs20.81/litre, diesel Rs55.36/litre since daily pricing mechanism introduced