Shocking reveal: how much tax Pakistanis are paying on petroleum products
Business
The Ministry of Petroleum disclosed in the National Assembly that consumers are paying three types of taxes on petroleum products, adding a hefty burden to everyday fuel prices.
ISLAMABAD (Dunya News) – A startling revelation came from the Ministry of Petroleum in the National Assembly today, showing that Pakistanis are paying multiple taxes on petroleum products, including petrol, high-speed diesel, and furnace oil.
According to documents presented in the National Assembly:
- High-speed diesel is taxed with 78 PKR per liter in petroleum levy, 2.50 PKR climate support levy, and a 10% customs duty.
- Petrol carries 82 PKR per liter petroleum levy, 2.50 PKR climate support levy, and 10% customs duty.
- Furnace oil has 77 PKR petroleum levy plus 18% GST.
- Other fuels: Kerosene is charged 18.95 PKR petroleum levy and light diesel 15.37 PKR per liter.
The Ministry clarified that petroleum levies are collected under the Petroleum Levy and Climate Support Ordinance 1961, while the climate support levy has been in effect since July 1, 2025.
Experts and lawmakers said these taxes are putting a heavy strain on ordinary consumers and called for measures to ease the burden. “The public is feeling the pinch,” noted a financial analyst, “and it’s time to give some relief at the pump.”
The disclosure highlights how layered taxation is making petroleum products increasingly expensive, hitting household budgets hard.
