Taxes and margins inflate petrol, diesel prices sharply

Islamabad: (Staff Desk) – Official documents have revealed that consumers are paying more than Rs110 per litre in taxes, levies and margins on petrol and high-speed diesel.

A total of Rs118.76 is being charged in taxes, levies and margins on every litre of petrol, while the corresponding amount on high-speed diesel stands at Rs110.65 per litre.

The base price of petrol is Rs178.77 per litre, whereas its consumer price has been fixed at Rs297.53. The difference includes Rs70.36 petroleum levy, Rs5 climate support levy, Rs19.33 customs duty, Rs6.86 inland freight equalisation margin, Rs7.87 oil marketing companies’ margin and Rs8.64 dealers’ margin.

Similarly, the base price of high-speed diesel is Rs198.85 per litre, while consumers are paying Rs309.50 per litre at fuel stations.

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The documents show that a major portion of fuel prices paid by consumers consists of government levies, duties and profit margins for oil marketing companies and petroleum dealers.