ISLAMABAD- Around 29% of the retail price of petrol in Pakistan consists of taxes, levies and distribution margins, according to industry calculations following the latest fuel price revision announced by the government.
Prime Minister Shehbaz Sharif on April 10 approved a Rs12 per litre reduction in petrol prices, setting the new rate at Rs366 per litre effective April 11. Despite the cut, a significant portion of the pump price continues to be driven by government charges and supply chain margins.
According to a working by Arif Habib Limited, the ex-refinery price of petrol stands at Rs258.71 per litre, while the final consumer price is Rs366.58 per litre. This indicates that about Rs107.87 per litre is added beyond the refinery gate through levies, taxes and margins.
The petroleum levy alone accounts for Rs80.61 per litre, while the Carbon Support Levy (CSL) adds Rs2.50. Inland freight equalisation margin (IFEM) stands at Rs8.25, oil marketing companies (OMC) margin at Rs7.87, and dealer margin at Rs8.64 per litre.
The analysis shows that the government is currently not collecting sales tax on petrol, even as other components continue to make up a substantial share of the retail price structure.
Petrol prices have also fluctuated sharply over the past year, rising from Rs254.63 per litre in April 2025 to over Rs378 earlier in April 2026 before the latest adjustment.
In contrast, the government reduced high-speed diesel prices by Rs135 per litre to Rs385.54, down from Rs520.35 earlier in the month. The ex-refinery price of diesel currently stands at Rs361.52 per litre, and authorities have withdrawn the petroleum levy on diesel.
Energy analysts say Pakistan’s fuel pricing structure remains heavily dependent on global oil trends and domestic fiscal requirements, with levies playing a key role in revenue generation despite recent price reductions.