Pakistan to Face Heavier Petroleum Levy Burden in FY26 Budget

Pakistanis are likely to face a significant increase in the petroleum levy in the upcoming fiscal year 2025-26 budget, as the government plans to collect an additional Rs. 194 billion from this revenue stream. This move is part of the government’s commitment to the International Monetary Fund (IMF), sources told ProPakistani. For the fiscal year 2025-26, the estimated target for petroleum levy collection has been set at Rs. 1,311 billion. This represents a substantial increase from the current fiscal year’s target of Rs. 1,117 billion. The additional burden will directly impact consumers through higher prices for petroleum products. Sources reveal that from July to March of the current fiscal year, petroleum levy collections stood at Rs. 833.847 billion. In the previous fiscal year (2023-24), total petroleum levy collection amounted to Rs. 1,019 billion, while in FY 2022-23, it was Rs. 580 billion. The projected collection for FY 2025-26 will be the highest ever. Currently, the petroleum levy on petrol and diesel is already at an all-time high in Pakistan. Consumers are paying Rs. 78.02 per liter as petroleum levy on petrol and Rs. 77.01 per liter on high-speed diesel. This new increase will further add to the financial strain on citizens.