Fuel Taxes Eat Up Over One-Third of Rs. 250+ per Liter Price

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KARACHI: Citizens pay over 95 rupees to the government as tax on every liter of petrol and diesel they purchase.

Currently, the price of petroleum products in Pakistan exceeds Rs. 250 per liter, meaning that when a consumer buys a liter of petrol, diesel, or kerosene, they pay more than Rs. 250 out of their pocket.

However, many people may not know how much of this amount actually goes to the government in the form of taxes.

According to documents obtained by a private TV channel from the Petroleum Division, Rs. 94.89 per liter of petrol and Rs. 95.35 per liter of diesel is collected as taxes. This means that around 35–36% of the retail price of fuel goes directly to government coffers.

On petrol, taxes include a petroleum levy of Rs. 78.02, customs duty of Rs. 14.37, and a climate support levy of Rs. 2.50 per liter. For diesel, the taxes consist of a petroleum levy of Rs. 77.01, customs duty of Rs. 15.84, and a climate support levy of Rs. 2.50 per liter.

This detailed breakdown shows that a significant portion of what consumers pay for fuel goes toward government taxes rather than the cost of the fuel itself.

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