The government is weighing another increase in petrol taxes as it works to boost revenue and stay aligned with IMF requirements, according to Finance Ministry sources. Officials are reviewing options to strengthen collections without derailing fiscal targets, especially as pressure from international lenders continues.
Right now, petroleum levy collections are already expected to cross the annual target of Rs. 1,468 billion. Even so, policymakers are discussing ways to raise the levy further in the coming months. This suggests that consumers may not get relief on fuel prices anytime soon.
The latest move follows a recent hike, where the government raised the petroleum levy on petrol by around Rs. 27 per litre. This pushed the total levy to more than Rs. 107 per litre. The increase came as part of broader fiscal steps linked to the IMF program.
At the same time, sources say the IMF is urging Pakistan to reduce subsidies and depend more on direct taxation. This includes higher petroleum levies to keep the budget in check. In response, the government has assured the IMF that it will maintain strict financial discipline.
Meanwhile, fuel prices in Pakistan have already climbed sharply in recent months. Global oil shocks and regional tensions have played a role. However, domestic taxes remain the main reason behind the rising cost of petrol.

