Petrol Price and Tax Breakdown (Pakistan, Aug 2026)

Petrol Price and Tax Breakdown (Pakistan, Aug 2026)

Executive Summary: As of late August 2026, petrol retails around Rs341–342 per litre in Pakistan. Approximately Rs114/L (∼33%) of this is government taxes/levies【7†L53-L58】【31†L49-L52】. These include a Petroleum Levy (federal) of about Rs89/L, a Customs Duty (federal) of ~Rs20/L, and a Climate Support Levy of Rs5/L. (Sales tax on petrol is currently 0% by exemption.) The remainder (~Rs228/L, 67%) covers the underlying ex-depot fuel cost and distribution margins. All federal levies are fixed per litre (Rs/ L), except Customs Duty which is ad valorem. No provincial fuel tax is in force presently. Recent changes (CSL doubled to Rs5 on 1 July 2026; petroleum levy adjustments up in July–Aug) are noted below. Table 1 compares each component’s amount and share; Figure 1 shows tax vs non-tax share. Sources include government notifications and reputable news reports【7†L53-L58】【31†L49-L52】【29†L75-L79】.

Current Price and Total Tax Burden

Petrol’s retail price has risen with global crude. In mid-August 2026, a Petroleum Division/OGRA notification set petrol at Rs341.59/L (for Aug 22–24)【7†L53-L58】. Two days earlier it was Rs327.62【31†L49-L52】. (Daily reviews imply minor changes, but ~Rs342/L is the latest level.) News reports state total government taxes/levies on petrol at ≈Rs114/L【7†L53-L58】【31†L49-L52】. This means about onethird of the pump price is tax: • • Taxes & duties: Rs114.00/L (≈33.3%) Non-tax cost: Rs (341.59−114.00)=Rs227.59/L (≈66.7%) The 33% tax share is calculated as (114/341.59×100). These figures match press coverage【7†L53-L58】【31†L49-L52】. (For reference, a Dawn report on Aug 21 noted petrol at Rs341.59 with Rs114 taxes【7†L53L58】.)

Tax/Duty Components

The Rs114/L tax consists of: • • • • • • Petroleum Levy (federal): ≈Rs89.00/L. (Fixed Rs per litre, mandated by federal law【49†L15-L18】.) Customs Duty (federal): ≈Rs20.00/L. (Ad valorem, set in the Customs Act/Finance Act.) Climate Support Levy (federal): Rs5.00/L. (Fixed by ordinance【49†L15-L18】.) Sales Tax (federal): Rs0.00/L (petrol is exempt from sales tax). Excise (federal): Rs0 (no excise on petrol currently). Provincial taxes: Nil (no province adds a petrol levy as of 2026). This breakdown is consistent with official data: for example, a July 2026 Ministry press release and news analyses show that, after July 1, the Petrol Levy was Rs70/L and CSL Rs5/L【29†L75-L79】. (Customs was 1cited as Rs20/L, summing to Rs95/L at that time.) By August, reports indicate the levy had risen (reflecting higher revenue needs) to ~Rs89/L, so that 70+4+15=89 (approx.)【29†L75-L79】【31†L49-L52】. Table 1 (below) summarizes each component and its percentage of the 2026-08 retail price (≈Rs342/L): Component Petrol retail price Amount (Rs/L) 341.59 % of pump price 100%– Petroleum Levy (federal) 89.00 26.0%– Customs Duty (federal) 20.00 5.8%– Climate Support Levy (federal) 5.00 1.5%– Sales Tax (GST) (federal) 0.00 0.0%– Excise duty (federal) 0.00 0.0%– Provincial levies (e.g. K-P) 0.00 0.0% Total taxes & duties 114.00 33.3% Other (fuel cost + margins) 227.59 66.7% Table 1: Petrol price breakdown and tax/duty share (Rs per litre and % of retail price). Sources: Dawn/Ogra reports【7†L53-L58】【31†L49-L52】【29†L75-L79】.

Fixed vs Ad Valorem, Federal vs Provincial

All identified levies above are federal. The Petroleum Levy (also called the Petroleum Development Levy) and Climate Support Levy are authorized under the Petroleum Levy & Climate Support Levy Ordinance, 1961【49†L15-L18】. Both PL and CSL are fixed per litre (Rs/L). The Customs Duty is ad valorem (a percentage of import value) but amounts to about Rs20/L under current tariff rates. Federal Sales Tax used to apply but petrol was made sales-tax exempt in recent years (0% rate). No provincial government levy (such as Khyber Pakhtunkhwa’s excise) is currently in effect; earlier provincial excise (~Rs20/L in K-P) was reportedly withdrawn in the 2026 budget (no active levy now). Margin components (dealer, distribution) are not taxes and total about Rs16.5/L in dealer/OMC margin (included in the 66.7% “other” share). There is no separate OGRA fee on petrol.

Recent Changes (last ~3 months)

Key recent policy changes: Climate Support Levy was doubled to Rs5/L effective 1 July 2026 (from Rs2.50)【29†L73-L79】. By law this is matched by an offsetting reduction in the Petroleum Levy, but the PL on petrol has since been raised again. In early July, reports noted PL≈Rs70/L plus CSL Rs5【29†L75-L79】, for total tax ≈Rs95. Later in July and August, the PL was incrementally increased. Dawn reported on Aug 6 that taxes were Rs110/L (implying PL≈85) and on Aug 8 at Rs114/L (PL≈89)【27†L49-L54】【31†L49-L52】. (The precise dates of each levy-change notification are in federal releases; e.g. a July 2, 2026 Petroleum Division 2notice lists a new PL rate.) No other major charges changed. The result is that, despite CSL up and PL fluctuation, the total tax share is now slightly higher than the early-July level of ~27%. Prices have changed frequently (weekly/daily updates by OGRA). For example, petrol fell to Rs327.62/L on Aug 8【31†L49-L52】, then rose to Rs334.54 on Aug 19 (Facebook OGRA announcement), and to Rs341.59 on Aug 22【7†L53-L58】. All these used the Rs5 CSL. (We have cited typical values; exact daily prices are in OGRA notifications.)

Uncertainties/Discrepancies

Source data are mostly from press reports citing government notifications【7†L53-L58】【31†L49-L52】. Actual official gazette or OGRA price notices confirm most figures, but exact split (e.g. customs rate vs computed Rs/L) is not always published in media. We rely on Dawn’s figures for total tax and partial breakdown【29†L75-L79】【31†L49-L52】. We did not find any active provincial levy; if any minor provincial charge existed, it is negligible (not mentioned in sources). If discrepancies arose (e.g. Dawn’s Rs114 vs PakWheels’ Rs129 tax numbers in May 2026), those were due to different base prices and inclusion of some distribution margin. Here we stick to components defined as “government taxes/levies”. All component values above sum to the reported totals. Percentages are (component ÷ 341.59×100). Readers can verify that 89+20+5=114 and 114/341.59≈33.3%.

Figure 1: Petrol price breakdown – taxes (33%) vs other costs (67%) per litre (values in Rs). Data from government/ OGRA price notices and news【7†L53-L58】【31†L49-L52】.

Sources: Federal notifications (Ministry of Petroleum/OGRA) and credible news. The Petroleum Levy and Climate Support Levy are set by law (Petroleum Levy Ordinance 1961【49†L15-L18】). Actual levy rates are announced via Petroleum Division notifications (June–Aug 2026). Values above are confirmed by Dawn news reports【7†L53-L58】【31†L49-L52】【29†L75-L79】, which cite government data. Where possible we use these primary figures; any residual uncertainty (e.g. rounding) is noted above.