ISLAMABAD – A new report has shed light on the staggering share of taxes in Pakistan’s fuel prices, revealing that nearly one-third of what consumers pay at the pump is made up of government-imposed levies and charges.
According to the breakdown, every litre of petrol carries Rs. 94.89 in taxes. Of this, Rs. 14.37 is collected as customs duty, Rs. 78.02 as a petroleum levy, and Rs. 2.50 as a climate support levy. Diesel users face a similar situation, with Rs. 95.35 in total taxes on each litre Rs. 15.84 in customs duty, Rs. 77.01 in petroleum levy, and Rs. 2.50 in climate support levy.
The petroleum levy stands out as the heaviest burden, accounting for more than three-fourths of the total tax on both fuels. Analysts say this alone plays a decisive role in pushing prices upward, squeezing household budgets and raising the cost of goods and transport across the country.
While the government views these levies as an important source of revenue to finance various initiatives, experts caution that the policy comes at the expense of the public. “Every adjustment in fuel taxes immediately ripples through the economy, adding to inflation and making daily living more expensive,” one energy analyst noted.
The report emphasizes that fuel taxation is not just a fiscal matter but a direct household issue. With prices already straining the middle and lower-income groups, any further hike in levies could deepen concerns about affordability and the overall economic impact on Pakistani families.
