ISLAMABAD: Pakistani citizens are likely to face a significant increase in fuel prices in the upcoming fiscal year 2025-26, as the government plans to collect an additional Rs194 billion through the petroleum levy. This move is part of the government’s commitment to the International Monetary Fund (IMF), according to sources familiar with the matter.
For the fiscal year 2025-26, the estimated target for petroleum levy collection has been set at a staggering Rs1,311 billion. This represents a substantial increase from the current fiscal year’s target of Rs1,117 billion. The additional burden, if implemented, will directly impact consumers through higher prices for petrol and diesel.
Sources reveal that from July to March of the current fiscal year, petroleum levy collections stood at Rs833.847 billion. In the previous fiscal year (2023-24), total petroleum levy collection amounted to Rs1,019 billion, while in FY 2022-23, it was Rs580 billion. The projected collection for FY 2025-26 will mark the highest ever petroleum levy collection in Pakistan’s history.
Currently, the petroleum levy on petrol and diesel is already at an all-time high in Pakistan. Consumers are paying Rs78.02 per liter as petroleum levy on petrol and Rs. 77.01 per liter on high-speed diesel. This new increase, once imposed, will further add to the financial strain on citizens already contending with high inflation.
