KARACHI – Pakistanis are reeling under high fuel prices as the federal government is charging a heavy mix of taxes, levies, and profit margins, with of petrol per litre goes up to Rs266 from July 2025.
The recent price hike in petrol and diesel has exposed the burden placed on consumers, who are now paying more in taxes and charges than ever before. With the latest revision, petrol prices have increased by Rs8.36 per liter to Rs270.55, while high-speed diesel has gone up by Rs10.39, reaching Rs272.98 per liter.
A detailed breakdown shows a massive chunk of these prices stems not from international oil rates, but from government-imposed levies and stakeholder margins.
Taxes on Petrol in Pakistan July 2025
| POLs | Petrol | Diesel |
|---|---|---|
| Ex-Refinery Price | 165.30 | 177.24 |
| Petroleum Levy | 75.52 | 74.51 |
| Carbon Levy (New Tax) | 2.50 | 2.50 |
| Inland Freight Charges | 6.96 | 2.09 |
| OMC Margin | 7.87 | 8.00 |
| Dealer Margin | 8.64 | 8.64 |
| Sales Tax | 0% | 0% |
| Total Additional Charges | 78.02 | 77.01 |
| Combined Stakeholder Margins | 23.47 | 18.73 |
Latest update shows taxes and margins now account for more than Rs75 per liter, with new carbon levy adding to the burden on consumers. Even with no sales tax in place, the impact of these indirect charges is being felt sharply public.
The sharp rise in fuel prices has triggered widespread backlash from transporters, industrialists, and daily wage earners. Many argue that the government is using petroleum products as a revenue source, directly impacting inflation and increasing the cost of living.
Bus Fares go up
After government jacked up petrol and diesel prices, transporters raised intercity fares. Routes like Lahore to Faisalabad, Bhalwal, Chakwal, and Sialkot saw a Rs. 50 hike, while longer routes such as Lahore to Mirpur, Karachi, and Kotli increased by Rs. 200–300.
Passengers expressed frustration, saying the poor are being hit hardest. Transporters argue the fare hike is necessary due to higher fuel costs. Public demand is growing for government regulation and relief.
Big Increase in Petrol Prices Announced for July 2025; Check New Rates
