Massive taxes and new levies push petrol prices higher in Pakistan

 Pakistani consumers are facing significantly increased taxes and duties on petroleum products, with detailed figures revealing the heavy financial burden.

According to the reports, taxes and levies on petrol amount to Rs101.49 per litre, including a petroleum development levy (PDL) of Rs75.52, a newly introduced climate levy of Rs2.50, freight margins, oil company margins, and dealer margins.

The ex-refinery price of petrol is Rs165.30 per litre, while the total taxes and levies push the retail price to Rs266.89 per litre, after an Rs8.36 increase announced by the government. This price hike follows a recent increase of Rs14.80 per litre, reflecting government efforts to meet IMF-imposed climate financing conditions.

Similarly, high-speed diesel (HSD) faces total taxes of Rs95.74 per litre, with the ex-refinery price at Rs177.24.

A climate support levy of Rs2.50 per litre has been imposed on both petrol and diesel, alongside other taxes and margins.

The government’s decision to introduce the climate levy and increase petrol prices underscores ongoing efforts to align with international climate financing commitments, but it has also sparked concerns among consumers over rising fuel costs.

The new fiscal policies aim to balance economic needs with environmental objectives amid ongoing challenges in the energy sector.

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Petroleum prices hike for next fortnight

Islamabad: The government has announced an increase in the prices of petroleum...

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.