A significant portion of the petrol and diesel prices paid by consumers in Pakistan is comprised of taxes, levies, and industry margins rather than the actual fuel cost. On every litre of petrol, Rs. 118.76 is collected by the government and the supply chain, while Rs. 110.65 is added to high-speed diesel. Petrol’s base cost of Rs. 178.77 per litre is sold at Rs. 297.53, and diesel’s base cost of Rs. 198.85 per litre is sold at Rs. 309.50. The additional cost includes petroleum levy, climate support levy, customs duty, freight, and margins for oil companies and dealers, making fuel considerably more expensive for consumers.
