A recent report has revealed that almost one-third of the price Pakistanis pay for fuel is made up of taxes and government charges. This means that a large portion of what consumers spend on petrol and diesel does not go toward the actual fuel but instead toward various levies.
According to the findings, every liter of petrol includes Rs. 94.89 in taxes. This amount is divided into different components: Rs. 14.37 goes toward customs duty, Rs. 78.02 is collected as petroleum levy, and Rs. 2.50 is added as a climate support levy.
The situation is almost the same for diesel users. For every liter of diesel, Rs. 95.35 is charged in taxes. Out of this, Rs. 15.84 is customs duty, Rs. 77.01 is petroleum levy, and Rs. 2.50 is climate support levy.
The petroleum levy alone makes up the largest part of these charges, taking more than three-fourths of the total tax amount. This heavy taxation plays a big role in raising fuel prices across the country.
Experts warn that while these levies help the government generate revenue and fund certain initiatives, they also add to the financial burden of ordinary citizens. Since fuel costs directly affect the prices of goods and transport, high taxes on petrol and diesel contribute to inflation and make daily living more expensive for people.
The report highlights that fuel pricing policies are directly linked to household budgets. Any increase in taxes or levies immediately pushes up costs for families and businesses, leaving many Pakistanis concerned about affordability and the long-term impact on the economy.
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