Former Finance Minister and Awaam Pakistan Party Secretary General Miftah Ismail has claimed that the actual cost of petrol reaches approximately Rs220 per litre by the time it arrives at Karachi Port, with the remaining retail price largely comprising government taxes and profit margins for Oil Marketing Companies (OMCs).
Speaking on ARY News’ programme Sawal Yeh Hai, Ismail said the Rs220 figure includes import costs, freight charges and other related duties. He argued that the amount consumers pay above this level is mainly made up of government taxes and the margins allocated to OMCs.
According to Ismail, the government has consistently protected the profit margins of oil marketing companies while placing a significant tax burden on consumers. He also criticised proposals aimed at reducing petrol prices for motorcycle riders, claiming such measures are often dismissed due to Pakistan’s commitments under the International Monetary Fund (IMF) programme.
The former finance minister further stated that nearly 60% of Pakistan’s petrol consumption comes from motorcycle users. He claimed these consumers are effectively paying around Rs120 per litre in taxes, arguing that such a heavy tax burden on low-income households contributes directly to rising living costs.
Ismail also questioned the government’s decision to introduce daily petroleum price revisions, saying that genuine deregulation would allow fuel prices to be determined by market forces rather than simply increasing the frequency of official price adjustments.
He further alleged that the government increased petrol prices in the middle of an existing pricing cycle, enabling oil companies to benefit even though previously announced prices were supposed to remain effective until the middle of the month.
Meanwhile, the Petroleum Division has announced that petroleum prices will remain unchanged until July 27. Under the current pricing structure, petrol will continue to be sold at Rs335.18 per litre, while high-speed diesel (HSD) will remain priced at Rs383.46 per litre for Sunday and Monday.
The government’s next review of petroleum prices is expected after the current pricing period concludes.
