How Much Tax Do Pakistanis Pay on Petrol?

Pakistani consumers are now paying significant taxes and duties on petroleum products, as per new data released on July 1, 2025. A detailed breakdown obtained by reveals that petrol now carries Rs101.49 per litre in taxes and duties.

This includes a Petroleum Development Levy (PDL) of Rs75.52, a new Climate Levy of Rs2.50, a freight margin of Rs6.98, oil company margin of Rs7.87, and dealer margin of Rs8.64. The ex-refinery price of petrol is Rs165.30 per litre.

Similarly, high-speed diesel (HSD) now has Rs95.74 per litre in taxes, including a PDL of Rs74.51, the new Climate Levy of Rs2.50, and the same dealer and company margins. The ex-refinery price for diesel is Rs177.24.

This Climate Support Levy, introduced from July 1, has been imposed as part of Pakistan’s agreement with the International Monetary Fund (IMF) under their climate financing framework. Although this new levy adds Rs2.50 per litre, it was balanced by a slight reduction in the previously set PDL.

Additionally, the government raised petrol prices by Rs8.36 per litre, following a notification from the Ministry of Finance. The new petrol price stands at Rs266.89 per litre.

These updates come at the start of the new fiscal year 2025–26, reflecting the government’s alignment with IMF policy recommendations.