Breakdown Price of Petrol in Pakistan – 2021

person taking a photo of blue and white gasoline station
Petrol Station

The price of petrol you pay is an accumulation of several components. Let’s understand some of them by breaking petrol’s price.

Earn money from home in Pakistan:

Price of petrol:

Today the price of petrol in Pakistan reaches nearly 137Rs. Let us break down the price. There are nearly 6 components which play a role in selecting the petrol price. These components get affected by changes like changes in tax rate/policy, international price change etc.

ComponentsPercentage
Ex-Refinery Price 62.5%The ex-refinery price is the amount at which local refineries sell their product to the Oil Marketing Companies (OMCs). Refineries are not free to set this price and instead it is calculated by OGRA.
Levy on petrol 14.2%A fuel levy, as an excise tax charged on petroleum products such as petrol, diesel and biodiesel, can be an important source of revenue for the government. It can, however, be a burden on fuel consumers.
General Sales Tax (GST) 13.3%General Sales Tax (GST) is applied as a fixed percentage on the sum of all the above components. The final cost after applying the sales tax is known as the Ex-Depot Sale Price.
Dealer margin 3.7%The margin which dealers take.
Inland freight margin 3.6%In-land Freight Equalization Margin (IFEM) is calculated by OGRA and implemented to equalize prices throughout the country.
Oil company margin 2.8%
Breakdown of petrol price

Is Govt responsible for an increase In petrol and diesel price?

Well, one can argue that govt is responsible for the price hike in the country, but if you look down at the price breakdown, you will find that govt effect less than 28% of the petroleum price, the major chunk of nearly 70% is effected by international rates of petroleum. Nearly 3 years ago the price of 1 barrel of crude oil was nearly 40$ and today it crossed the 80$ mark.

Farrukh Mumtaz

Farrukh Mumtaz is a graphic designer having about 3+ years of experience in the field of design. He has an extensive portfolio which you can see on behance.net/farrukhmumtaz.

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