The Federal Government has collected substantial revenue from petroleum taxes, raising questions about how these funds are being allocated amid stable domestic fuel prices.
According to official figures, the Petroleum Development Levy (PDL) brought in Rs 828 billion from July to December 2025, reflecting a significant increase compared to the previous fiscal year. The Federal Board of Revenue (FBR) reported that the surge in revenue, an increase of Rs 284 billion, was driven by higher legal fuel supplies and price adjustments.
Between July and November, Rs 706 billion was collected, of which Rs 146 billion came from improved legal supply of fuel, while Rs 138 billion resulted from price adjustments. Officials attributed the revenue gains in part to strict enforcement measures that reduced smuggling of petroleum products.
As part of nationwide efforts to curb illegal trade, the FBR has sealed 1,442 unauthorized petrol pumps, though around 142 pumps continue to operate illegally. Enforcement actions have been carried out in Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan, and officials indicated that further operations are planned to strengthen compliance.
Earlier disclosures by the Federal Minister for Petroleum, Ali Pervaiz Malik, revealed that the government had collected Rs 66.13 billion in petroleum levies between April 16 and September 30, 2025, following an increase of Rs 8 per liter on petrol and Rs 7 per liter on diesel. Lawmakers had questioned why domestic fuel prices remained unchanged despite falling global oil rates and sought clarification on the use of the additional revenue, particularly for the N-25 Highway upgrade.
The Petroleum Minister explained that levy collections are deposited into the Federal Consolidated Fund and their allocation to specific projects falls under the remit of the public sector development ministry, not the Petroleum Division. As such, the precise use of the funds for infrastructure projects remains subject to oversight by relevant authorities.
The recent data highlights the growing contribution of petroleum taxes to government revenue while leaving unanswered questions regarding transparency and public expenditure.