ISLAMABAD: The federal government collected more than Rs. 1.2 trillion in petroleum levy during the first nine months of the current fiscal year, according to official details presented before the National Assembly. The figures highlighted the government’s increasing dependence on fuel-related taxes to meet fiscal targets and maintain commitments linked to the International Monetary Fund programme.
Official documents showed that petroleum levy collections reached Rs. 1.205 trillion between July and March FY26. In March alone, consumers paid nearly Rs. 137 billion under the levy, compared with Rs. 120 billion in February and Rs. 124 billion in January. ProPakistani, a renowned media organization, published this breaking news today.
Fuel Tax Collections Remain Consistently High
The data further revealed that levy collections remained strong throughout the fiscal year. Authorities collected approximately Rs. 145 billion in July, Rs. 115 billion in August, and Rs. 111 billion in September. Meanwhile, collections increased again to around Rs. 145 billion in October.
Later, the government collected nearly Rs. 151 billion in November and Rs. 157 billion in December, reflecting steady growth in fuel tax revenues. At the same time, authorities collected nearly Rs. 35 billion under the Climate Support Levy against the annual target of Rs. 51 billion.
According to recent reports, total petroleum levy collections already crossed Rs. 1.33 trillion during the first 10 months of FY26, bringing the government close to its yearly target of Rs. 1.468 trillion.
Rising Fuel Taxes Add Economic Pressure
The government recently increased petroleum levy rates on petrol and diesel several times to offset widening revenue shortfalls. Consequently, the petrol levy recently crossed Rs. 117 per litre after fresh increases announced earlier this month.
Economic experts warn that rising fuel taxes could continue increasing inflation and transportation costs nationwide, especially as global oil prices remain unstable due to Middle East tensions and disruptions in international energy markets.
