The Pakistani government plans to collect Rs1.676 trillion through the petroleum levy during the 2026-27 fiscal year. The target is based on an average levy of Rs80 per litre on both petrol and high-speed diesel. Energy Minister Ali Pervaiz Malik shared the details in a written reply to the National Assembly.
The government had earlier reduced the levy when global oil prices changed sharply to provide some relief to consumers. It is now increasing the levy gradually to meet its revenue target.
On July 1, the levy stood at Rs66.64 per litre for petrol and Rs79.54 for diesel. After several adjustments, the petrol levy reached Rs80 per litre on July 11. The diesel levy increased more gradually and reached Rs80 on August 20. Overall, the petrol levy increased by Rs13.36 per litre during this period.
The Petroleum Division has not assessed how the levy affects different groups of consumers. The collection target is part of the federal budget and Pakistan’s commitments to international lenders.
Any future reduction will depend on government revenue needs, available budget space, these commitments, and global oil prices.
