Official pricing documents have revealed that the government collects Rs118.76 per litre in taxes, levies and distribution margins on petrol, while the corresponding amount on high-speed diesel (HSD) stands at Rs110.65 per litre.

The documents show that the base cost of petrol is Rs178.77 per litre, but consumers are paying Rs297.53 per litre at the pump.

The difference includes Rs70.36 in petroleum levy, Rs5.00 in climate support levy, Rs19.33 in customs duty, Rs6.86 under the Inland Freight Equalization Margin (IFEM), Rs7.87 as the oil marketing companies’ margin, and Rs8.64 as the dealers’ margin.

Similarly, the base cost of high-speed diesel is Rs198.85 per litre, while its retail price has been fixed at Rs309.50 per litre.

According to the documents, the Rs110.65 difference between diesel’s base cost and retail price consists of petroleum levy, climate support levy, customs duty, freight adjustments and the prescribed margins for oil marketing companies and fuel dealers.

The latest breakdown shows that a significant share of the price motorists pay at fuel stations is made up of government levies, duties and supply-chain margins, rather than the underlying cost of the fuel itself.