petroleum levy collection

Pakistan Collects Record Rs1,567 Billion in Petroleum Levy

Pakistan’s petroleum levy collection reached a record Rs1,567.45 billion during fiscal year 2025-26, exceeding both the government’s target and the estimate made by the International Monetary Fund (IMF), according to sources.

Sources said the collection was around Rs100 billion higher than the government’s target of Rs1,468 billion for the fiscal year. The amount also exceeded the IMF’s estimated collection of Rs1,546 billion by around Rs21 billion.

The latest figures show a significant increase in petroleum levy collection compared with the previous fiscal year. Collection rose by Rs347.24 billion from Rs1,220.21 billion recorded during FY2024-25, highlighting the growing contribution of the levy to government revenues.

The petroleum levy has continued to generate substantial revenue as the government collects charges on petroleum products. In addition to the levy, authorities separately collected Rs50.16 billion under the Climate Support Levy during FY2025-26.

According to the available figures, petroleum levy collection stood at Rs1,019 billion in FY2023-24, before increasing to Rs1,220.21 billion in FY2024-25. The latest record represents a further sharp rise in revenue generated through the levy.

At present, a petroleum levy of Rs80 per litre is being collected on petrol, while high-speed diesel carries a levy of Rs77.28 per litre. A separate Climate Support Levy of Rs5 per litre is also imposed on both petrol and diesel.

The record petroleum levy collection comes as the government continues efforts to strengthen revenue generation and meet fiscal targets. The higher-than-expected collection could provide additional revenue support, although petroleum levies also contribute to the overall cost paid by consumers for fuel.

 

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