Pakistanis are now effectively paying more than Rs 150 in taxes alone on every liter of petrol. The Prime Minister recently sanctioned an increase of Rs 19.39 per liter for diesel and Rs 6.51 for petrol. Consequently, hidden fuel charges now exceed what most people pay in electricity taxes. After removal of TV fees, an average electricity bill has fixed charges, unit costs, sales tax, and adjustments. Fuel prices now carry much more than that.

Consumers pay Rs 153.55 per liter in combined taxes, levies, and distribution margins on petrol. The largest component comes from the petroleum levy at approximately Rs 103.50 per liter. This makes it the single biggest contributor to petrol prices. Therefore, hidden fuel charges include a customs duty of Rs 23.72 per liter. A Rs 2.50 climate support levy has also been added. Overall, taxes account for roughly 32 percent of the final petrol price.

A similar structure applies to diesel pricing. Consumers pay approximately Rs 116.46 per liter in combined taxes, levies, and margins on diesel. Hidden fuel charges on diesel include about Rs 51.62 per liter in customs duty. The petroleum levy adds Rs 28.69 per liter. The same Rs 2.50 climate support levy applies as well. Taxes represent around 21 percent of diesel prices. This is lower than petrol but still a big burden on transportation and industrial sectors.

Beyond taxation, several operational margins further increase retail prices. Inland freight margin adds Rs 17.14 per liter for transportation. Oil marketing companies receive around Rs 7.87 per liter in profit. Petrol pump dealers earn an additional Rs 8.64 per liter as commission. Hidden fuel charges mean motorists pay far more than the actual cost of fuel itself.