While the federal government reduced petrol prices by Rs7.45 per litre from August 1 in response to declining global crude oil prices, the move has been largely offset by a significant increase in petroleum levies, denying consumers substantial relief.

According to informed sources, the levy on petrol and diesel has been increased by Rs2.55 per litre, raising the total levy to Rs78.02 on petrol and Rs77.01 on diesel. This hike in petroleum levy came into effect alongside the new fuel prices on August 1.

In addition to the revised petroleum levy, a climate support levy of Rs2.50 per litre remains in place on both petrol and diesel, adding to the overall cost burden on consumers.

Further contributing to the increase, the freight margin on diesel was raised by 20 paisas, bringing it to Rs6.24 per litre. On top of this, dealer margins on both petrol and diesel stand at Rs8.64 per litre, while distributor margins are Rs7.87 per litre.

Also Read: Govt slashes petrol price by Rs7.54 for next fortnight

Despite the cumulative taxes and charges, the government has maintained a 0% sales tax on petroleum products. However, sources estimate that consumers are effectively paying around Rs100 per litre in various taxes and levies, making petrol and diesel prices considerably high despite the global price reduction.

On Friday, the federal government announced revised petrol and diesel prices for the next fortnight, effective from August 1, 2025.

According to a notification issued by the Ministry of Finance on Thursday midnight, the price of petrol was reduced by Rs7.54 per litre, while the price of diesel was increased by Rs1.48 per litre.

The new price of petrol has been set at Rs264.61 per litre. Diesel will now be sold at Rs285.83 per litre.