Pakistan’s government is considering another increase in petrol taxes in the coming months, according to Finance Ministry sources. This move aims to collect more revenue and fulfil conditions set by the International Monetary Fund (IMF).
The annual target for petroleum levy collection is Rs1,468 billion. Officials say collections are already on track to exceed this target. However, discussions are ongoing to raise the levy further to strengthen fiscal discipline.
Just days ago, on April 25, 2026, the government increased petrol and diesel prices by Rs26.77 per litre. The petroleum levy on petrol was raised by about Rs27, taking it to Rs107.38 per litre. As a result, petrol now costs around Rs393.35 per litre, while high-speed diesel is at Rs380.19 per litre.
The IMF has urged Pakistan to remove fuel subsidies and rely more on direct taxes, including higher fuel levies, instead of broad subsidies. The government has committed to strict financial management to meet these goals and secure further IMF funding.
In recent months, fuel prices in Pakistan have risen sharply. Although global oil prices have been volatile due to regional tensions, much of the domestic increase has come from higher taxes rather than international crude costs alone. Experts warn that further hikes could add pressure on common people, transporters, and inflation.
The final decision on any new levy increase will depend on ongoing talks with the IMF and revenue needs in the last months of the fiscal year.
