ISLAMABAD: The federal government has announced a reduction of Rs4 per litre in the price of petrol, providing some relief to consumers amid rising living costs.
However, official documents indicate that despite the decrease in fuel prices, a substantial burden of levies and margins continues to be imposed on petroleum products.
In this regard, the ex-refinery price of petrol currently stands at Rs235.37 per litre. Despite this base price, consumers are required to pay Rs377.78 per litre at retail outlets, indicating a significant difference driven by various taxes, levies, and margins included in the final price.
Government documents reveal that a total of Rs142.41 per litre is being collected under different heads, including petroleum levy and other charges. Of this amount, Rs116.08 per litre is being charged as petroleum levy, making it one of the largest components of the retail fuel price.
In addition, consumers are paying a Climate Support Levy of Rs2.50 per litre. Officials indicate that this levy may be subject to an increase following the announcement of the upcoming federal budget, potentially adding further costs for fuel consumers.
In this sense, the latest reduction in petrol prices follows a significant cut announced by the government last week, when both petrol and diesel prices were reduced by Rs22 per litre.
In the most recent revision, petrol prices have been lowered by an additional Rs4 per litre, while the price of diesel has been kept unchanged.
Meanwhile, discussions regarding energy pricing and revenue measures are expected to continue as policymakers prepare for the new fiscal year and the presentation of the federal budget.
Stakeholders will be closely monitoring any proposed changes to fuel-related taxes and levies that could affect consumers in the coming months.
The latest adjustment in petrol prices is expected to offer limited relief to motorists, although the overall cost burden remains significant due to the continued collection of levies and other charges included in the retail price structure.
