Petrol Prices Drop But Taxes Stay High in Pakistan
The government of Pakistan has announced a minor relief for motorists by reducing the fuel rates for next two weeks starting from 16 October to 30 October 2025. Petrol is now priced at Rs263.02 per litre which is down from Rs268.68 and high speed diesel stands at Rs275.41 per litre which is decreased by Rs1.39 per litre.
However despite this minor decrease the relief remains minimal as the government continues to collect massive taxes and Petrol Prices Drop But Taxes Stay High in Pakistan on every litre of petrol and diesel.
Latest Petrol and Diesel Price In Pakistan Today
| Fuel Type | Previous price | New price | Change |
| Petrol | Rs 268.68 | Rs 263.02 | -5.66 |
| Diesel | Rs 276.80 | Rs 275.41 | -1.39 |
Read More : Ogra Petrol price in Pakistan Today
Breakdown of Taxes on Petrol and Diesel
Even after the reduction, the tax burden on fuel remains extremely high. According to the official document Petrol Prices Drop But Taxes Stay High in Pakistan and nearly one third of the fuel price consists of taxes collected by the government.
According to the reports Petrol Prices Drop But Taxes Stay High in Pakistan
| Tax Component | Petrol | Diesel |
| Customs Duty | 14.37 | 15.84 |
| Petroleum Levy | 78.02 | 77.01 |
| Climate Support Levy | 2.50 | 2.50 |
| Total Taxes | 94.89 | 95.35 |
Read More: Fuel Shortage Trigger in Sindh
Fuel Taxes Affect Consumers
For everyday use of fuel for transporters this means that out of every Rs263 spent on petrol and Rupees 94.89 goes directly to government coffers With inflation already squeezing household budgets, the citizens feel that such heavy taxation is unfair and unsustainable. The minor price cut barely offsets the economic pressure faced by the middle and lower income groups.
Government Maintains High Fuel Taxes
The government maintains high fuel taxes and these fuel taxes remain a key revenue source for the government. The Petroleum Levy alone brings in hundreds of billions annually which helps the state meet IMF targets and fiscal deficits. However the economic experts warn that continuously high levies can lead to reduced purchasing power, higher transport costs, and increased inflation across essential commodities.
Public Reaction
Many Pakistanis have expressed frustration, arguing that called relief of Rs5 to 6 per litre is meaningless when nearly Rs95 of every litre goes to taxes. Social media discussions show rising concern over how much of the price is driven by government revenue collection rather than global oil prices.
Conclusion
Petrol Prices Drop But Taxes Stay High in Pakistan and the latest taxes on petrol and diesel in Pakistan reveal that despite slight price cuts, motorists continue to face heavy financial pressure. Until the government reduces fuel related taxes and especially the petroleum levy and any short term relief will feel like a drop in the ocean for ordinary citizens.
FAQ’s
What is the current Petrol and Diesel price in Pakistan?
The Current Petrol price is Rupees 263.02 per liter and Diesel price is Rupees 275.41 per liter.
Will petrol and diesel prices drop further in Pakistan?
Petrol and diesel prices Future changes depend on global oil prices and the rupee dollar exchange rate and government tax policies.
How much tax is charged on petrol ?
Currently, every liter of petrol carries Rupees 94.89 in total taxes which include customs duty, petroleum levy, and climate support levy.
What is the petroleum levy?
The petroleum levy means the fixed tax imposed by the government on fuel to generate revenue. It is currently at Rupees 78.02 per liter on petrol.
Why are Petrol Prices Drop But Taxes Stay High in Pakistan?
Petrol Prices Drop But Taxes Stay High in Pakistan and High fuel taxes help the government meet budget targets and IMF commitments and they also burden consumers.