Former finance minister Miftah Ismail has questioned Pakistan’s petrol pricing system, claiming that the actual cost of imported petrol is much lower than the amount paid by consumers. He said petrol reaches Karachi Port at around Rs. 220 per litre, while taxes and oil marketing company (OMC) profits significantly increase the final retail price.
Speaking on a television programme, Ismail explained that the Rs. 220 per litre estimate includes import expenses, duties and other related costs. According to him, the remaining amount added to petrol prices mainly comes from government taxes and the profit margins of oil companies.
Miftah Criticises High Taxes on Petrol Consumers
The former finance minister alleged that the government has continued to safeguard OMC profit margins while placing a heavy financial burden on consumers through taxes.
He also questioned proposals aimed at reducing petrol prices for motorcycle users. According to Ismail, such measures are often rejected because of concerns regarding Pakistan’s agreements with the International Monetary Fund (IMF).
Ismail claimed that motorcycle riders account for nearly 60 percent of petrol consumption in the country. He said these consumers are paying around Rs. 120 per litre in taxes, which directly affects their daily expenses.
Furthermore, he argued that such a high tax rate on fuel increases the cost of living, especially for lower-income groups who depend heavily on motorcycles for transportation.
Former Minister Raises Concerns Over Fuel Price Policy
Miftah Ismail also criticised the government’s decision to introduce daily petroleum price adjustments. He said real deregulation would require prices to change according to market conditions rather than simply increasing the frequency of revisions.
He argued that changing the review system does not represent complete deregulation. Instead, he said fuel prices should reflect actual market movements.
The former minister also alleged that petrol prices were increased during an ongoing pricing period. He claimed that the decision allowed oil companies to benefit despite previous rates remaining effective until the middle of the month.
Petrol Prices Remain Unchanged Until July 27
Meanwhile, the Petroleum Division announced that petroleum prices would remain unchanged until July 27.
Under the current pricing structure, petrol continues to sell at Rs. 335.18 per litre, while high-speed diesel remains available at Rs. 383.46 per litre for Sunday and Monday.
The ongoing discussion over fuel prices has renewed debate about taxation, petroleum policies and their impact on consumers. Miftah Ismail’s remarks have highlighted concerns about whether the current pricing system provides relief to ordinary citizens or increases their financial pressure.
