ISLAMABAD: The federal government is reported to have collected over ₨ 1.2 trillion in petroleum levy from consumers during the first nine months of FY26, while an additional ₨ 35 billion was raised under the new Climate Support Levy, official documents reveal.
The collections come as households already grappling with record inflation and stagnant wages continue to bear the brunt of indirect taxation.
According to media reports, records show the petroleum levy haul averaged ₨ 133 billion per month between July 2025 and March 2026. Collections peaked at ₨ 157 billion in December, with no month below ₨ 111 billion.
On top of this, the Climate Support Levy — introduced July 1, 2025 at ₨ 2.5 per litre on petrol, diesel and furnace oil — has added another layer of cost. Total CSL collections are projected to hit ₨ 51 billion by June 2026.
The fuel levies compound an already heavy tax load on basic utilities.
Data from power distribution companies shows electricity consumers paid over ₨ 1.9 trillion in taxes over the last three fiscal years, with annual payments rising from ₨ 507 billion in FY23 to over ₨ 700 billion last fiscal year. Lahore Electric Supply Company alone recovered more than ₨ 532 billion from its consumers.
The government’s aggressive levy collection is said to be tied to commitments under the IMF program.
Pakistan is required to maintain a petroleum levy of at least ₨ 80 per litre, though the current rate stands at ₨ 107.4 per litre. With FBR facing a ₨ 683 billion tax shortfall in FY26, authorities are under pressure to maximize non-tax revenues to meet the agreed primary budget surplus target.
Analysts note that while the levies help plug fiscal gaps, they directly feed into transport and food prices, disproportionately impacting low- and middle-income households already facing what many economists describe as the country’s most severe inflationary episode in decades.
The petroleum levy target for the full fiscal year is ₨ 1.468 trillion, with over ₨ 1.33 trillion already collected by April.
