ISLAMABAD: The burden of taxes, duties, and margins on petrol consumers in Pakistan has increased significantly following the US-Israel-Iran conflict, rising from Rs107.12 per litre before the crisis to Rs153.55 per litre afterward. Instead of providing relief to consumers amid the regional tensions, the petroleum levy, duties, and margins were increased, according to official data.
Although the share has declined in percentage terms, from 42 percent of the total cost to 38.40 percent, it has risen in absolute terms by Rs46.43 per litre, the data available with The Nation reveals. Consumers are currently burdened with the petroleum levy, customs duty, and Inland Freight Equalisation Margin (IFEM). While customs duty, petroleum levy, and IFEM vary for petrol and high-speed diesel (HSD), the oil marketing companies’ (OMC) margin and dealer commission remain fixed for both products.
Prior to the recent Middle East crisis, taxes, duties, and margins on petrol stood at Rs107.12 per litre, accounting for 42 percent of the total cost. However, consumers in Pakistan are now paying more than Rs153.55 per litre in taxes, duties, and margins on petrol. The ex-refinery price of petrol prior to customs duty is Rs246.31 per litre, which goes up to Rs399.86 per litre after adding the burden of Rs153.55 per litre on account of petroleum levy, customs duty, IFEM, and margins.
On petrol, Rs127.22 per litre of the total cost is being charged as petroleum levy and duty, while the remaining amount covers IFEM, OMCs margin, and dealers commission. As of April 30, 2026, the federal government had been charging Rs103.50 per litre as petroleum levy on petrol. Similarly, Rs23.72 per litre customs duty and Rs2.50 per litre climate levy are also being charged on petrol. In addition, dealer commission at Rs8.64 per litre and dealer commission at Rs7.87 per litre at a fixed rate per litre are being collected on petrol. Another Rs7.32 per litre of petrol is being collected as an inland freight equalisation margin.
On the other hand, the burden of taxes, duties, and margins on HSD consumers is Rs116.46 per litre, or 29.03 percent of the total cost. The main reason for the decline in taxes, duties, and margins on HSD is due to the reduction in petroleum levy. As of April 30, out of the HSD price of Rs399.58 per litre, Rs116.46 per litre was being charged on account of petroleum levy, climate support levy, customs duty, margins/commission, and IFEM. The ex-refinery price of HSD prior to customs duty is Rs283.12 per litre, which goes up to Rs399.58 per litre after adding the burden of Rs116.46 per litre on account of petroleum levy, customs duty, IFEM, and margins.
The government collects Rs82.81 per litre from HSD consumers on account of petroleum levy, climate support levy, and customs duty, while the remaining amount covers IFEM, OMC margin, and dealer commission. Customs duty of Rs51.62 per litre, petroleum levy of Rs28.69 per litre, and climate support levy at Rs2.5 per litre are being charged on high-speed diesel. Additionally, Rs8.64 per litre dealer commission and dealer commission of Rs7.87 per litre at a fixed rate per litre are being collected on high-speed diesel. On HSD, an IFEM of Rs17.14 per litre is being collected. At present, no sales tax is being collected on petrol and diesel.
