Concerns Raised Over Government Taxes and Levies on Petrol

Updated: 2:39 PM PKT — June 21, 2026

Following a recent major price reduction, new details have emerged on the tax structure for petroleum products. The total tax on petrol, now priced at Rs 299.50 per litre, is Rs 88.07. This comprises a Rs 66.25 petroleum levy, Rs 19.32 in customs duty, and a Rs 2.50 climate support levy.

For diesel, which now costs Rs 311.47 per litre, the total tax burden is Rs 91.15. This includes a Rs 72.97 petroleum levy, Rs 15.68 in customs duty, and the same Rs 2.50 climate support levy. The government recently slashed the price of petrol by Rs 74.28 and diesel by Rs 67.31 per litre.

Updated: 12:01 AM PKT — June 21, 2026

Taxes now comprise 29% of the retail price of both petrol and diesel, according to details from the Petroleum Division. For every litre of petrol, consumers pay Rs 88.07 in taxes, which includes a petroleum levy of Rs 66.25. The tax on a litre of diesel amounts to Rs 91.15, consisting of a Rs 72.97 petroleum levy, Rs 15.68 in customs duty, and a Rs 2.50 climate support levy.

In a significant but less publicized move, the federal government slashed the levy on high-octane fuel, primarily used in luxury vehicles, by a historic Rs 214.12 per litre. The levy on high-octane was reduced from Rs 305.37 to Rs 91.25 per litre, a stark contrast to the adjustments made for petrol and diesel.