The government’s latest increase in fuel prices has drawn attention to the sizeable portion of taxes included in petrol and diesel rates, with official figures showing a significant burden on consumers.
According to sources in the Ministry of Energy, around 32 percent of the price of one litre of petrol consists of taxes. In monetary terms, Rs129.72 per litre is charged under various heads.
The breakdown shows that Rs23.72 per litre is collected as customs duty, while Rs103.50 is taken as petroleum levy. A climate support levy of Rs2.50 per litre is also included in the final price.
For high-speed diesel (HSD), the tax share is relatively lower at about 21 percent. However, the total tax amount still stands at Rs82.81 per litre. This includes Rs51.62 per litre in customs duty, Rs28.69 per litre as levy, and Rs2.50 per litre under the climate support levy.
Prices raised from May 1
The tax details come as the federal government raised fuel prices from May 1, 2026. According to a statement issued by the Petroleum Division, the ex-depot price of petrol was increased by Rs6.51 per litre, taking it from Rs393.35 to Rs399.86 per litre.
The price of HSD saw a sharper increase of Rs19.39 per litre, pushing it to Rs399.58 per litre.
In contrast, the price of kerosene oil was reduced by Rs4.45 per litre, bringing it down to Rs360.76 per litre.
Officials said the changes were partly driven by adjustments in the petroleum levy to meet the government’s revenue target of Rs1.4 trillion for the current fiscal year. The levy on HSD has now been fixed at Rs28.69 per litre, compared to zero earlier.
On petrol, the levy has been reduced by Rs3.88 per litre, while the rate for high-octane blending component remains unchanged. Levies on kerosene and light diesel oil stand at Rs20.36 and Rs15.84 per litre, respectively.
Global factors and cost pressures
Fuel prices have also been influenced by changes in global oil markets. The supply cost of petrol rose by USD4.88 per barrel, while HSD increased by USD5.56 per barrel in the latest review.
At the same time, Brent crude prices have shown some volatility, recently easing to USD115.98 per barrel after touching USD126.41 per barrel, the highest level since March 2022.
Despite these fluctuations, the premium on petrol and diesel has remained unchanged.
The combined effect of higher global prices and domestic taxes continues to shape fuel costs, with direct implications for transport fares, goods prices and overall inflation in the country.
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