The federal government has collected Rs. 220 billion through the petroleum levy during July and August, marking the first two months of the 2026-27 fiscal year. The latest figures highlight the government’s continued reliance on fuel-related taxes to generate revenue.
Official data shows that the government aims to collect Rs 1.676 trillion through the petroleum levy during the current financial year. Meanwhile, authorities collected Rs 1.567 trillion during the previous fiscal year, exceeding the original budget target.
The latest collection comes as the government faces growing pressure to reduce fuel-related taxes and provide relief to consumers. However, existing financial commitments leave limited room for reducing the levy.
Petroleum Levy Target Reaches Rs 1.676 Trillion
The government currently charges a petroleum levy of Rs. 80 per litre on both petrol and high-speed diesel. Parliament has also empowered the federal government to adjust the levy without seeking additional parliamentary approval.
Furthermore, petroleum levy collections reached Rs 1.567 trillion during 2025-26, exceeding the initial target of Rs 1.468 trillion by approximately Rs. 99 billion. The government now plans to increase collections by Rs 109 billion during the current fiscal year.
Additional Fuel Levies Generate Billions
Besides the petroleum levy, the government collected Rs 27.5 billion through the Climate Support Levy during July and August. The New Energy Vehicle Adoption Levy generated another Rs 7.225 billion during the same period.
The government has set annual collection targets of Rs. 50 billion for the Climate Support Levy and Rs 22.481 billion for the NEV levy.
Meanwhile, the government continues negotiations with Jamaat-e-Islami over demands to reduce petroleum levies. However, its commitments under the International Monetary Fund’s $7 billion programme could complicate efforts to lower fuel-related taxes.
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