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Home Business

Staggering fuel taxes: consumers paying heavy levies on petrol, diesel, and furnace oil

January 20, 2026
in Business
Rs10.28 per litre petrol price cut announced for January 2026

ISLAMABAD (Web Desk) – The Ministry of Petroleum presented detailed figures in the National Assembly showing that consumers in Pakistan are paying three types of taxes on petroleum products, including petrol, high-speed diesel, and furnace oil.

Read also: Petrol, diesel prices expected to drop again in Pakistan

According to the document, High-Speed Diesel (HSD) carries a petroleum levy of 75.41 PKR per liter, a climate support levy of 2.50 PKR, and a 10% customs duty. Petrol is subject to a petroleum levy of 79.62 PKR, a climate support levy of 2.50 PKR, and a 10% customs duty.

Furnace oil is taxed with a petroleum levy of 77 PKR per liter plus 18% GST. Kerosene is charged 18.95 PKR per liter as petroleum levy, while light diesel oil (LDO) has a petroleum levy of 15.37 PKR per liter.

The Ministry clarified that these taxes are collected under the Petroleum Levy and Climate Support Ordinance 1961, and the climate support levy has been in effect since July 1, 2025.

Experts and lawmakers said these layered taxes are putting a heavy burden on ordinary consumers. “The public is feeling the pinch at the pump,” said a financial analyst, “and it is high time the government provides relief.”

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The disclosure highlights the growing impact of fuel taxes on household budgets and transport costs, emphasizing how ordinary citizens are paying significantly more than the base price of petroleum products.

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Tags: Climate Support LevyCustoms Dutydieselfuel pricesFuel TaxesFurnace OilGSTPakistan Economypetroleum levyTags: Petrol

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