According to the new prices of petroleum announced to be implemented in effect in the next 15 days, the federal government has imposed an increment of petroleum levy of Rs2.50 per litre, starting August 1, 2025.
In the new revision, the total amount of petroleum levy imposed on the consumer on a per litre product on petrol is now Rs77.01 per litre as opposed to Rs74.15 previously. Besides, a carbon tax at the rate of 2.50 Rs per litre will be effective as of the July 1, 2025. There is the compound effect of the petroleum levy and carbon tax which I will add to get the total amount of tax that petrol has to be raised to Rs79.51 per litre.
According to the Oil and Gas Regulatory Authority (OGRA), oil marketing companies earn a profit margin of Rs7.87 per litre, while petrol pump dealers receive Rs8.64 per litre.
For price equalization across the country, the Inland Freight Equalization Margin (IFEM) is also added. From August 1, the IFEM on high-speed diesel is Rs6.24 per litre, increased from Rs6.04, while IFEM on petrol is Rs8.70 per litre, slightly down from Rs8.89 in the previous pricing cycle.
The base price of diesel, excluding all taxes and profit margins, is Rs183.57 per litre. After including all applicable taxes, the consumer diesel price is Rs285.83 per litre.
The base price of petrol, excluding taxes and margins, is Rs158.88 per litre. With all taxes and margins included, the updated petrol price in Pakistan is Rs264.61 per litre.
These fuel price changes come amid ongoing adjustments in global oil markets and the government’s strategy to meet its revenue targets through indirect taxation on petroleum products.
