KARACHI: The government has collected billions of rupees from consumers through petroleum levy over the past four fiscal years, with reported collections reaching approximately Rs4,400 billion, exceeding the set target by Rs227 billion.
According to available official figures, revenue generated through the petroleum levy has increased significantly in recent years. For the current fiscal year, the government has set a collection target of Rs1,676 billion under this head.
Petroleum Levy Collections Rise Significantly Over Four Years
The figures show that the government collected Rs542 billion in petroleum levy during the fiscal year 2022-23. The amount increased to Rs960 billion in 2023-24.
Collections rose further to Rs1,161 billion in fiscal year 2024-25, before reaching Rs1,567 billion in 2025-26.
According to the reported figures, total petroleum levy collections over the four-year period were approximately Rs4,400 billion, exceeding the target by Rs227 billion.
Petroleum Levy Revenue Projected to Reach Rs6,076 Billion in Five Years
Government estimates suggest that cumulative petroleum levy collections could reach Rs6,076 billion over a five-year period.
For the ongoing fiscal year, the collection target has been set at Rs1,676 billion, highlighting the continued importance of petroleum levy as a source of government revenue.
Consumers Pay More Than Rs100 Per Litre in Taxes and Other Charges
Apart from the base price of petroleum products, consumers also bear various taxes, duties, levies and margins included in the retail price of fuel.
According to the available figures, a total of Rs110.78 per litre is being collected on petrol in the form of petroleum levy, taxes, duties and margins.
Similarly, consumers are paying Rs107.55 per litre on high-speed diesel under various taxes, levies and other margins.
Decision on Petroleum Levy Reduction Deferred Until Next Budget
Consumers hoping for a reduction in petroleum levy may have to wait longer, as the government has deferred a decision on lowering the levy until the next federal budget.
As a result, the existing petroleum levy and other applicable charges on petrol and diesel will remain in place for now. Any possible reduction or revision in these charges may be considered during the preparation of the next fiscal year’s budget.
