Petroleum Levy Collection Reaches Historic High, Finance Data Shows

New documents from the Ministry of Finance Pakistan reveal that consumers continue to bear a growing petroleum levy burden, with record collections during the first half of the fiscal year.

Record Collection in Six Months

Between July and December of FY 2025–26, petroleum levy collection reached Rs 822.93 billion, the highest ever recorded in any six-month period.

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On a yearly basis, this represents an increase of Rs 273.51 billion compared to the same period last year, when collections stood at Rs 549.41 billion.

Full-Year Target

For the current fiscal year, the government has set a petroleum levy collection target of Rs 1,468.39 billion.

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Trend Over Recent Years

• FY 2024–25: Rs 1,220.21 billion
• FY 2023–24: Rs 1,019 billion
• FY 2022–23: Rs 580 billion

The steady rise reflects increased reliance on fuel-related levies as a revenue source.

Impact on Consumers

Petroleum levy is included in fuel prices, meaning higher collections often translate into additional financial pressure on households and businesses already coping with inflation and rising energy costs.

Economic Perspective

Analysts note that while the levy supports government revenue needs, its impact on transport, goods pricing, and overall cost of living remains a key concern.

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