Former finance minister and Awaam Pakistan Party Secretary General Miftah Ismail has claimed that the landed cost of petrol at Karachi Port stands at approximately Rs. 220 per litre, with the remainder of the retail price, which currently sits at Rs. 335.18 per litre, composed almost entirely of government taxes and profit margins earned by Oil Marketing Companies (OMCs).
Speaking on ARY News’ program Sawal Yeh Hai, Ismail broke down the anatomy of Pakistan’s pump price, saying the Rs. 220 figure already accounts for import-related costs and duties. “The amount consumers pay above that level primarily consists of taxes and margins earned by OMCs,” he said.
The former finance minister alleged that successive governments have consistently shielded the profit margins of oil companies while imposing a disproportionate tax burden on consumers. He pointed to the fact that nearly 60 percent of the country’s petrol is consumed by motorcycle riders, who, by his calculation, are effectively paying around Rs. 120 per litre in taxes — a burden he argued inevitably drives up the cost of living for low-income households.
Ismail also took aim at proposals to reduce petrol prices specifically for motorcycle riders, claiming such suggestions are routinely shot down over concerns about Pakistan’s commitments to the International Monetary Fund (IMF).
Turning to the government’s recent policy shift, Ismail criticized the move toward daily petroleum price revisions, arguing that genuine deregulation would have allowed prices to be determined by market forces rather than merely tinkering with the frequency of government-set adjustments. He further alleged that the government raised petrol prices midway through a pricing period, enabling oil companies to reap the benefit even though existing prices were meant to remain applicable until the middle of the month.
Meanwhile, the Petroleum Division announced that petroleum prices will remain unchanged until July 27. Under the current pricing regime, petrol will continue to sell at Rs. 335.18 per litre and high-speed diesel at Rs. 383.46 per litre for Sunday and Monday.
