Consumers continue to bear a substantial burden of taxes, levies and distribution margins on petroleum products, with a significant portion of the prices of petrol and high-speed diesel (HSD) going towards government charges and other components rather than the basic fuel cost. According to official documents, petrol is currently priced at Rs327.62 per litre, while the basic cost of the product stands at Rs197.69 per litre. This means consumers are paying around Rs130 per litre in the form of petroleum levy, taxes, freight-related charges and margins. The documents indicate that the government has imposed a petroleum levy of Rs80 per litre on petrol, making it one of the largest components of the additional charges paid by consumers. In addition to the petroleum levy, petrol carries a climate support levy of Rs5 per litre and customs duty of Rs21.24 per litre. The price also includes an inland freight equalisation margin of Rs7.48 per litre. Meanwhile, oil marketing companies (OMCs) receive a margin of Rs7.87 per litre, while petroleum dealers are entitled to a margin of Rs8.64 per litre. Taken together, these taxes, levies, freight charges and commercial margins add a sizeable amount to the underlying cost of petrol, resulting in a significant difference between the basic product cost and the final price paid at filling stations. Diesel also carries substantial charges A similar situation is visible in the pricing structure of high-speed diesel. According to the documents, the basic cost of HSD has been calculated at Rs264.76 per litre, whereas its notified consumer price stands at Rs380.86 per litre. The difference of approximately Rs116 per litre represents taxes, levies and various margins included in the final price of diesel. The petroleum levy on HSD stands at Rs74.28 per litre, while a climate support levy of Rs5 per litre is also included in the price structure. Consumers are additionally paying Rs15.68 per litre in customs duty on HSD. The inland freight equalisation margin accounts for another Rs4.63 per litre. The pricing structure also provides Rs7.87 per litre as the margin for oil marketing companies and Rs8.64 per litre as the dealers’ margin. The figures highlight the significant role played by government levies and other charges in determining retail petroleum prices. While the basic cost reflects the underlying price of the petroleum product, the final amount paid by consumers also incorporates a range of taxes, levies, freight costs and margins. The petroleum levy remains one of the most prominent components of the pricing structure for both petrol and diesel. The government uses petroleum-related levies as an important source of revenue, while other components are intended to cover costs associated with transportation, marketing and retail distribution. The high level of charges has a direct impact on consumers and businesses, particularly because petrol and diesel are widely used for transportation and commercial activities. Changes in fuel prices can also influence the cost of transporting goods and passengers and may eventually affect prices across different sectors of the economy.

The Capital Development Authority (CDA) has accelerated plans to construct a new six-lane carriageway along Service Road East, approving a project worth Rs5.072 billion aimed at easing chronic traffic congestion on the Islamabad Expressway and improving connectivity between Faizabad and Koral Chowk. The 9.25-kilometre road will run parallel to the Islamabad Expressway, extending from Faizabad to Koral Chowk near Gulberg Housing Society. Once completed, the new corridor is expected to provide motorists with an alternative route, reducing travel time on one of the capital’s busiest transport arteries while facilitating smoother traffic movement for commuters travelling to Islamabad and Rawalpindi. Officials said the project forms part of the CDA’s broader strategy to upgrade the capital’s road infrastructure in response to increasing traffic volumes and rapid urban expansion in surrounding residential and commercial areas. According to official sources, the new carriageway is expected to improve access to several housing societies and neighbourhoods located along the eastern side of the Islamabad Expressway. Authorities believe the project will not only ease traffic bottlenecks but also stimulate commercial development by increasing the value of properties and attracting new businesses along the corridor. To facilitate construction, the CDA has earmarked approximately Rs500 million for the relocation of critical utility infrastructure. This includes fibre-optic networks operated by the Islamabad Police Safe City Project, the Strategic Plans Division (SPD), Sui Northern Gas Pipelines Limited (SNGPL), and the Islamabad Electric Supply Company (IESCO). Sources said extensive utility shifting will be required before the main construction work can proceed at full pace. The project involves relocating 11kV electricity distribution lines, shifting 242 electricity poles, and relocating 248 graves that fall within the road alignment. Earthwork activities have already begun at selected locations. The road project also incorporates environmental protection measures. Officials said engineers have planned the preservation of 22 underground water channels, natural streams, and stormwater drains located along the proposed route to minimise environmental disruption and maintain the area’s natural drainage system. A breakdown of utility relocation costs shows that around Rs406 million has been allocated for IESCO infrastructure, Rs87.3 million for shifting Safe City fibre-optic networks, and approximately Rs6 million for relocating SPD facilities. Work on these utility relocation components is expected to commence after the completion of technical and administrative formalities. A senior CDA official said the authority has revised the project’s completion timeline, reducing the original target of 12 months to between six and eight months. However, the official acknowledged that the timely relocation of utilities remains the biggest hurdle and will largely determine whether the revised deadline can be achieved.