ISLAMABAD: The federal government is likely to miss its revised petroleum levy (PL) target of Rs1,161 billion for FY2024-25, as surging global oil prices — triggered by Israel’s recent attacks on Iran — drive up local fuel costs and dampen consumption.
Following the attacks, international petrol prices climbed by \$1.98 per barrel to \$73.79, while high-speed diesel (HSD) rose by \$2.54 per barrel to \$78.68. This could translate into a domestic hike of Rs4.38 per litre for petrol and Rs5.02 for HSD from June 16, 2025.
Petrol and HSD costs have already increased to Rs141 and Rs145.58 per litre, respectively. Customs duty is also projected to rise slightly on both fuels. The average exchange rate rose marginally to Rs282.49.
Despite lifting the Rs60 per litre PL cap in March through an ordinance, allowing the government to collect up to Rs18.02 per litre on petrol and Rs17 on HSD, only Rs834 billion — 71% of the revised target — has been collected in the first nine months of FY2024-25.
With fuel consumption likely to decline further due to price pressures, experts warn the upcoming fiscal year’s PL target of Rs1.4 trillion may also be missed. OGRA is expected to finalize new prices based on the last 15 days’ data before the Finance Division’s announcement on June 15.
Story by Wasim Iqbal
