Motorists in Pakistan are paying more than Rs112 to Rs125 per litre in taxes, petroleum levies and distribution margins, making fuel significantly more expensive than its actual import cost, according to official pricing documents.

The documents show that while the base cost of petrol stands at Rs209.76 per litre, the government has fixed the retail price at Rs335.18 per litre. This means consumers are paying an additional Rs125.95 per litre through petroleum levy, customs duty, freight charges and dealer margins.

The largest component is the petroleum levy of Rs80 per litre, followed by a climate support levy of Rs5. Petrol also includes Rs17.28 in customs duty, Rs7.16 as Inland Freight Equalisation Margin (IFEM), Rs7.87 for oil marketing companies and Rs8.64 as the dealer margin.

High-speed diesel carries a similar burden. Although its base cost is Rs270.92 per litre, the official retail price has been set at Rs383.46 per litre. This leaves Rs112.54 per litre in additional taxes, levies and margins.

The breakdown for diesel includes a petroleum levy of Rs70.82, a climate support levy of Rs5, Rs15.68 in customs duty, Rs4.53 under IFEM, Rs7.87 for oil marketing companies and Rs8.64 as the dealer margin.

Fuel prices play a key role in determining transportation costs, inflation and the prices of essential goods across Pakistan. Any increase in taxes or levies on petroleum products can have a direct impact on household expenses and business operating costs.

Consumers and businesses continue to closely monitor fuel pricing, as any future revisions could influence inflation, transport fares and the overall cost of living.