ISLAMABAD: The Government of Pakistan has reduced the price of petrol by only Rs1.70 per litre despite a decline in global crude oil prices, leaving a substantial gap between the reported import cost and the price being charged to consumers.
According to a notification issued by the Petroleum Division, the new ex-depot price of petrol has been set at Rs392.05 per litre, down from Rs393.75 per litre.
The price of High-Speed Diesel (HSD) has also been reduced by Rs3.12 per litre, bringing its new price to Rs418.96 per litre.
What is the actual situation?
According to the figures cited by the government, the import cost of petrol has fallen to Rs281.49 per litre. Despite this, consumers are being charged Rs392.05 per litre.
This represents a difference of approximately Rs110.56 per litre between the reported import cost and the retail price paid by consumers.
The figures have raised questions over the various government levies, duties, margins and transportation costs incorporated into the final price of petrol.
Detailed breakdown of petrol pricing
The following charges and margins are included in the price of petrol:
Petroleum levy: Rs80 per litre
Climate Support Levy: Rs5 per litre
Customs duty: Rs23.68 per litre
Oil marketing companies’ margin: Rs7.87 per litre
Dealers’ margin: Rs9.98 per litre
Inland Freight Equalization Margin (IFEM): Rs7.71 per litre
These charges are added to the underlying cost of the petroleum product before the final price is determined for consumers.
Global oil price reference
According to figures attributed to the Oil and Gas Regulatory Authority (OGRA), the average international price of petrol was recorded at $132.30 per barrel, while the average international price of High-Speed Diesel stood at $121.34 per barrel.
Pakistan meets more than 80 percent of its petroleum product requirements through imports, making international oil prices an important factor in the country’s domestic fuel pricing.
Critics argue that the reduction in domestic petrol prices has not adequately reflected the changes in international market conditions. They contend that consumers are receiving only limited relief despite the reported decline in import costs.
The government, however, incorporates several components—including levies, duties, marketing and dealer margins, and freight-related costs—into the final consumer price. Therefore, the difference between import cost and retail price cannot be attributed to a single charge or factor.
With petrol still priced at Rs392.05 per litre, the latest price revision has once again intensified debate over fuel taxation, pricing mechanisms and the extent to which fluctuations in international oil prices are passed on to Pakistani consumers.
