Govt collects Rs80 petroleum levy on every litre of petrol

Despite a decline in global crude oil prices, fuel consumers in Pakistan have faced a significant increase in petrol and diesel prices over the past 10 days.

The government recently increased petrol prices by Rs1.63 per litre, taking the new price to Rs335.81 per litre. High-speed diesel was also increased by Rs1.55 per litre, reaching Rs388.38 per litre.

The increase came as international crude oil prices fell by nearly $5 per barrel during the same period.

Since the introduction of the government’s daily petroleum price adjustment policy, diesel prices in Pakistan have risen by more than Rs65 per litre, while petrol prices have increased by over Rs26 per litre.

Fuel prices rise sharply in Pakistan

On July 17, the price of high-speed diesel stood at Rs323.30 per litre. It has since climbed to Rs388.38 per litre, marking an increase of Rs65.08.

Similarly, petrol prices increased by Rs26.43 per litre, rising from Rs310.71 on July 17 to Rs335.81 per litre.

During this period, consumers received only Rs1.35 per litre relief on petrol prices.

Global crude oil prices decline

International markets recorded a downward trend in crude oil prices.

The price of Brent crude fell from $88 per barrel on July 17 to around $83 per barrel, a decline of nearly $5.

US crude oil prices also dropped from $82.49 per barrel to $78.51 per barrel.

Meanwhile, global petrol prices rose temporarily during the period, reaching $118 per barrel on July 23 before falling to $110 per barrel on July 27.

Diesel prices in the international market also increased initially, rising from $142 per barrel on July 17 to $169 per barrel on July 23, before declining to $150.58 per barrel on July 27.

Government fuel levies and charges

The government is currently collecting Rs80 per litre as petroleum levy on petrol, along with a Rs5 climate levy.

Other charges on petrol include Rs8.64 per litre oil company margin, Rs7.87 distribution margin and Rs15 customs duty.

For diesel, the government is imposing a petroleum levy of Rs70.82 per litre, along with Rs8.64 oil company margin, Rs5 climate support levy, Rs5 freight margin and Rs15 customs duty.