The federal government has collected approximately Rs. 4,400 billion through the petroleum levy over the past four fiscal years, exceeding its cumulative collection target by Rs. 227 billion, according to official data.
Petroleum levy revenue has increased steadily over the period. Collections rose from Rs. 542 billion in FY2022-23 to Rs. 960 billion in FY2023-24. The government collected Rs. 1,161 billion in FY2024-25, followed by Rs. 1,567 billion in FY2025-26, exceeding that year’s target by Rs. 99 billion.
For the current fiscal year, the government has set a petroleum levy collection target of Rs. 1,676 billion. If achieved, total collections over five years will reach approximately Rs. 6,076 billion.
Meanwhile, consumers continue to pay substantial taxes, duties, and margins on petroleum products. These combined charges, including the petroleum levy, stand at Rs. 110.78 per litre on petrol and Rs. 107.55 per litre on high-speed diesel.
The government has also postponed a decision on reducing the petroleum levy until the next federal budget, keeping it an important source of revenue.
