Petroleum Levy collection hits record Rs1.57 trillion

Petroleum Levy collection hits record Rs1.57 trillion

Pakistan’s petroleum levy collection reached a record Rs1.567 trillion during the fiscal year 2025-26, exceeding both the government’s target and the International Monetary Fund’s (IMF) projection, according to sources.

The government also collected an additional Rs50.16 billion as Climate Support Levy during the fiscal year, adding further revenue from petroleum products.

Sources said petroleum levy collections increased by Rs347.24 billion compared with the previous fiscal year. The total collection stood nearly Rs100 billion above the government’s target of Rs1.468 trillion for FY2025-26.

The collection also surpassed the IMF’s estimate. The global lender had projected petroleum levy revenues of around Rs1.546 trillion for the fiscal year, meaning the actual collection exceeded the projection by approximately Rs21 billion.

Petroleum levy revenues have continued to rise sharply in recent years. The government collected Rs1.220 trillion in FY2024-25, compared with Rs1.019 trillion in FY2023-24. In FY2022-23, petroleum levy collection stood at around Rs580 billion.

The latest figures reflect the government’s growing reliance on petroleum-related revenues to strengthen its fiscal position and meet revenue requirements under its economic programme.

At present, the government charges a petroleum levy of Rs80 per litre on petrol, while high-speed diesel carries a levy of Rs77.28 per litre. In addition, the government imposes a separate Climate Support Levy of Rs5 per litre each on petrol and diesel.

The record collection comes as the government continues to seek higher revenues while managing fiscal pressures and meeting commitments under its agreement with the IMF. The increased levy revenue provides additional funds for the federal budget but also adds to the overall cost burden on consumers through petroleum prices.