The federal government has collected approximately Rs4,400 billion from consumers through the petroleum levy over the past four fiscal years, exceeding its cumulative target by Rs227 billion, according to official data. The government has set a petroleum levy collection target of Rs1,676 billion for the current fiscal year, taking the projected five-year collection to Rs6,076 billion. The data shows that petroleum levy revenue has increased steadily, rising from Rs542 billion in fiscal year 2022-23 to Rs960 billion in 2023-24.

Collections reached Rs1,161 billion in 2024-25 before climbing to Rs1,567 billion in 2025-26, exceeding the target for that fiscal year by Rs99 billion. Consumers are also paying substantial taxes, duties and margins on petroleum products. The combined charges, including the petroleum levy, amount to Rs110.78 per litre on petrol and Rs107.55 per litre on high-speed diesel. The government has deferred a decision on reducing the petroleum levy until the next federal budget. The levy remains a significant source of government revenue, with the current fiscal year's collection target set at Rs1,676 billion.

Credit: Independent News Pakistan (INP)