How much tax are Pakistanis paying on every liter of petrol amid fuel relief?
ISLAMABAD – Fuel has been hurting the domestic budget and the commercial sector since the start of the Iran war, and Pakistanis are paying Rs 391.30 for a litre, a large fraction of the cost of fuel.
The petrol price, which shows how much fuel costs before government charges and what motorists actually pay at petrol stations, adds up to over Rs 136 per litre. According to official price data, the base price of petrol is Rs 254.96 per litre. Despite this, the pump price has been fixed at Rs 391.30 per litre.
This means consumers are paying Rs 136.34 per liter more than the base price of the product. But where will this extra money come from? The biggest component is the petroleum levy, which is Rs 80 per litre.
Another Rs 5 per liter is charged as climate support levy, while customs duty adds Rs 23.68 to the price. The rest of the difference comes through several industry and distribution-related charges.
These include Rs 7.91 per liter Inland Freight Equalization Margin, Rs 7.87 Oil Marketing Company Margin and Rs 9.98 Dealer Margin. There is also an exchange adjustment of Rs 1.90 per liter in the price calculation. After adding these various charges, the basic price of petrol at the pump increases by Rs 254.96 to Rs 391.30.
The same pricing structure is seen in the case of high speed diesel. The official base price of HSD is Rs 285.85 per litre, but consumers are paying Rs 408.53 per litre. This creates a difference of Rs 122.68 per liter between the base price and the retail price.
The breakdown is important because petrol and diesel prices are affected by far more than drivers. Fuel costs feed directly into transport fares, freight charges, business operating costs and household budgets. The final pump price is pushed by international oil prices and exchange rate movements, but these are only part of the calculation.
How much relief is coming in petrol for Pakistanis? Prime Minister Shehbaz gave an indication to give subsidy to IMF.
The post How much tax are Pakistanis paying on every liter of petrol amid fuel relief? appeared first on Daily Pakistan English News.
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