ISLAMABAD: The government’s decision to increase the dealers’ margin on petrol and diesel has added to the financial burden on consumers, with the additional cost being reflected in the latest retail prices of petroleum products.

According to official pricing documents, the dealers’ margin on both petrol and high-speed diesel (HSD) has been increased from Rs8.64 to Rs9.98 per litre, representing an increase of Rs1.34 per litre.

The additional margin has been incorporated into the latest petroleum product prices and is being passed on to consumers. Had the dealers’ margin remained unchanged, consumers could have received relief of Rs1.34 per litre on both petrol and diesel.

The pricing structure for August 22 shows that the ex-refinery price of diesel stood at Rs231.30 per litre. In addition to the basic product cost, diesel is subject to a Rs80 per litre petroleum levy and a Rs5 per litre carbon surcharge.

The pricing also includes an IFEM charge of Rs3.94 per litre and a distributor margin of Rs7.87 per litre. Collectively, taxes and other charges on diesel amount to Rs106.79 per litre, according to the official documents.

The ex-refinery price of petrol was also recorded at Rs231.30 per litre on August 22. Petrol carries a Rs80 per litre petroleum levy and a Rs5 per litre carbon surcharge.

In addition, an IFEM charge of Rs7.44 per litre and a distributor margin of Rs7.87 per litre are included in the petrol price structure. The total taxes and other charges on petrol amount to Rs110.29 per litre.

The latest pricing breakdown underscores the substantial share of levies, charges and margins in the retail prices of petroleum products. The increase in dealers’ margins has further added to the cost ultimately borne by consumers at petrol stations across the country.

The development comes at a time when petroleum prices remain a major component of household and business expenses, with changes in fuel prices having a direct impact on transportation costs and, consequently, the prices of goods and services.