Govt Sets Rs1.676 Trillion Petroleum Levy Target for FY2026-27
ISLAMABAD: The federal government has set a target of Rs1.676 trillion in petroleum levy collections for fiscal year 2026-27, based on an average levy of Rs80 per litre on petrol and high-speed diesel (HSD).
Minister for Energy (Petroleum Division) Ali Pervaiz Malik disclosed the target in a written response submitted to the National Assembly on Friday.
The minister said the petroleum levy had been reduced during a period of exceptional volatility in international oil markets to provide relief to consumers, but was now being restored in phases in line with the government’s approved budgetary targets.
According to the minister, the levy on petrol stood at Rs66.64 per litre and on HSD at Rs79.54 per litre on July 1. The rates were revised to Rs64.14 and Rs77.04, respectively, on July 2, before being adjusted again on July 4 to Rs70.36 for petrol and Rs70.82 for HSD.
The petroleum levy on petrol reached the budgeted Rs80 per litre on July 11, while the levy on HSD remained at Rs70.82 per litre.
The government subsequently increased the HSD levy in stages, reaching Rs72.26 on August 6, Rs73.47 on August 7, Rs74.28 on August 8, Rs76.28 on August 12, Rs77.28 on August 13 and Rs78.28 on August 14.
By August 20, the levy on both petrol and HSD had reached Rs80 per litre. Overall, the levy on petrol increased by Rs13.36 per litre between July 1 and August 20.
Ali Pervaiz said the Petroleum Division had not conducted a separate assessment of the levy’s impact on specific categories of consumers.
He explained that petroleum levy collection targets form part of the federal budget and are linked to Pakistan’s fiscal commitments with international financial institutions.
Responding to a question about reducing the levy to provide relief to consumers, the minister said any decision would depend on available fiscal space, revenue requirements, commitments with international lenders and prevailing international oil prices.
He added that the government passes on the benefit of lower international oil prices to consumers whenever fiscal conditions permit, indicating that any future reduction in domestic fuel prices would depend on both global oil market trends and Pakistan’s fiscal position.
Story by Naveed Butt
