Taxes Account for Major Share of Fuel Prices in Pakistan

Islamabad: A significant portion of petroleum product prices in the country consists of taxes. According to a document issued by the Ministry of Energy, taxes account for 39 percent of the per-litre price of petrol.

The document states that taxes amount to Rs100.21 per litre of petrol, including Rs13.31 in customs duty, Rs84.40 in petroleum levy, and Rs2.50 as climate support levy.

The Energy Ministry document further states that taxes on one litre of diesel amount to Rs94.93, which represents 34 percent of the per-litre price. Diesel is subject to Rs15.68 in customs duty, Rs76.21 in petroleum levy, and Rs2.50 in climate support levy per litre.

According to the document, oil marketing companies charge Rs7.87 per litre each on petrol and diesel, while dealers charge Rs8.64 per litre each on petrol and diesel.

It is pertinent to note that the government has increased petroleum product prices today. The price of petrol has been raised by Rs5, bringing the new price to Rs258.17 per litre.

In addition, the price of high-speed diesel has been increased by Rs7.32, raising the new price of high-speed diesel to Rs275.70 per litre. The question remains whether the current government will continue to place the entire burden of taxes on the public or provide any relief. At present, it appears that solutions to issues are being sought through the imposition of further taxes on the public, raising concerns over how long the people of Pakistan will remain silent over these measures, a matter that only time will determine.

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