A detailed breakdown of Pakistan's petrol price shows that taxes, levies, and margins now exceed the actual cost of the fuel. The government raised the petroleum levy on petrol by Rs. 6.22 per litre to Rs. 70.36, while a separate Climate Support Levy of Rs. 5 per litre remains in place. Combined with customs duties and dealer margins, total charges reach Rs. 118.76 per litre, against a base fuel cost of Rs. 178.77. The retail price stands at Rs. 297.53 per litre. This pricing structure means consumers pay more in taxes and fees than the fuel itself costs. The Climate Support Levy, though small, signals a carbon pricing mechanism tied to fuel consumption. Energy experts note that despite falling global crude prices, the government chose to raise the petroleum levy on petrol while slightly reducing it on diesel. The breakdown highlights how fiscal policy can blunt the impact of lower international oil prices on household budgets.
