ISLAMABAD: Consumers in Pakistan are paying almost Rs145 per litre in taxes on petrol, according to a price composition shared by Mountain Ventures based on official data from the Oil and Gas Regulatory Authority (Ogra) and Ministry of Energy.
The breakdown, based on prices effective from May 9, 2026, shows that the maximum depot price of petrol stands at Rs414.78 per litre, of which Rs144.26 or 34.8 percent, is made up of taxes and levies.
Mountain Ventures is a Dubai-based advisory service focused on energy, technology and market restructuring. They publish sector analysis reports for clients and others.
The largest component of these taxes is the Petroleum Development Levy (PDL), which alone accounts for Rs117.41 per litre. Customs duty adds Rs24.35, while the Climate Support Levy (CSL) contributes Rs2.50 per litre.
The actual cost of fuel constitutes Rs246.76 per litre, or 59.5 percent of the retail price. In addition, marketing and distribution charges total Rs23.76 per litre (5.7 percent), including Rs7.25 under Inland Freight Equalisation Margin (IFEM), Rs7.87 as oil marketing companies’ margin and Rs8.64 as dealers’ commissions.
For high-speed diesel (HSD), the maximum depot price is Rs414.58 per litre. The fuel cost component is significantly higher than petrol at Rs314.16 per litre, accounting for 75.8 percent of the total price.
Taxes on diesel amount to Rs76.16 per litre, or 18.4 percent of the total price. This includes Rs42.60 in PDL, Rs31.06 in customs duty and Rs2.50 under the Climate Support Levy.
Marketing and distribution costs add another Rs24.27 per litre (5.8 percent), comprising Rs7.76 in IFEM, Rs7.87 in OMC margin and Rs8.64 in dealer commission.
The data highlights a stark difference in the tax burden between petrol and diesel. Petrol attracts nearly double the amount of taxes compared to diesel, with consumers paying Rs68 more per litre in taxes on petrol than on diesel.
This difference is largely driven by the much higher Petroleum Development Levy on petrol.
