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Home Business & Stock

Govt collects record Rs1.56 trillion in petroleum levy, exceeding IMF target

MM News Staff by MM News Staff
August 14, 2026
Reading Time: 1 min read

ISLAMABAD: Pakistan’s petroleum levy collection soared to Rs1,567 billion 45 crore in fiscal year 2025‑26, far exceeding both government and IMF estimates, even as the nation reels under the burden of disputed fuel pricing reforms, transport strikes, and looming shutdown threats from petrol pump owners.

According to official sources, an additional Rs50 billion 16 crore was collected separately under the climate support levy.

The levy collection rose by Rs347 billion 24 crore compared to the previous year, surpassing the government’s target by nearly Rs100 billion and exceeding IMF projections by Rs21 billion.

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For 2025‑26, the IMF had estimated petroleum levy collection at Rs1,546 billion, while the government’s target was Rs1,468 billion.

In comparison, levy collections stood at Rs1,220.21 billion in 2024‑25, Rs1,019 billion in 2023‑24, and Rs580 billion in 2022‑23.

Currently, a petroleum levy of Rs80 per liter is being charged on petrol and Rs77.28 per liter on high‑speed diesel, with a separate climate support levy of Rs5.5 per liter on both fuels.

These figures come amid mounting unrest in the petroleum sector.

The daily pricing mechanism proposed by the government has already triggered a nationwide strike by goods transporters, now in its second week, paralyzing supply chains.

Meanwhile, the Petroleum Dealers Association has issued a 72‑hour ultimatum, warning that petrol pumps across the country may shut down if their demands — including higher margins and withdrawal of company allocations — are not met.

Critics argue that while government leaders boast of playing a “leading role” in international peace politics, ordinary citizens continue to face petrol and diesel prices far above pre‑war levels, with no tangible relief in sight.

For households and businesses alike, the reality remains stark: rising levies, disrupted transport, and the threat of fuel pump closures compounding inflationary pressures.

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