ISLAMABAD: Taxes continue to account for 29% of the prices of both petrol and diesel despite the government’s latest reduction in fuel rates.
The government on Saturday reduced the price of petrol by Rs74.28 per litre and diesel by Rs67.31 per litre, bringing the new prices to Rs299.50 and Rs311.47 per litre, respectively.
According to sources, the price of petrol includes Rs88.07 per litre in taxes. This comprises Rs19.32 in customs duty, Rs66.25 in petroleum levy and Rs2.50 in climate support levy.
The sources said the price of diesel also includes 29% in taxes, with total taxes amounting to Rs91.15 per litre.
The tax component in diesel includes Rs15.68 per litre in customs duty, Rs72.97 in levy and Rs2.50 in climate support levy, according to Petroleum Division sources.
The government, which would review the price of petroleum products on a fortnightly basis, has been reviewing petroleum prices on a weekly basis since the US-Israeli conflict with Iran on February 28.
The price of petrol was Rs258.17 per litre when the war began and jumped to as high as Rs458.41 per litre, before coming a little above Rs370 per litre, just a few days back. Meanwhile, diesel was at Rs275.7 per litre and jumped to as high as Rs520.35 per litre.
However, after US and Iran signed an interim peace deal, mediated by Pakistan, Prime Minister Shehbaz Sharif announced a reduction in petrol prices, saying he had fulfilled his promise.
