A Simplified Cost Breakdown
Several economic analysts attempted to estimate the true industrial cost of petrol using global crude prices and local refining costs.
One widely shared breakdown suggested the following structure:
| Component | Estimated Cost |
|---|---|
| Crude oil cost (~$91/barrel) | ~Rs160 per liter |
| Refining cost | ~Rs20 |
| Transport and distribution | ~Rs15 |
| OMC + dealer margins | ~Rs12 |
| Industry cost estimate | ~Rs205 per liter |
Based on this calculation, anything above roughly Rs205 per liter is largely attributed to government taxes and petroleum levies.
This simplified model circulated widely across social media discussions and fueled the argument that taxation rather than crude oil cost is the main driver of Pakistan’s petrol price.
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