LAHORE: The government collected Rs1.567 trillion through the Petroleum Levy (PL) in fiscal year 2025-26. The figure exceeded the revised target of Rs1.498 trillion by around Rs69 billion.
The collection also surpassed the original target of Rs1.468 trillion by approximately Rs99 billion. The results highlight the growing role of the petroleum levy in the government’s revenue collection.
For fiscal year 2026-27, the government has set a petroleum levy target of Rs1.676 trillion. This is around Rs109 billion higher than the amount collected during the previous fiscal year.
The new target represents an increase of about 7 percent from the Rs1.567 trillion collected in FY2025-26. The government will therefore rely further on petroleum products to support its revenue plans.
The petroleum levy remains an important source of non-tax revenue for the government. It is charged on products such as petrol and high-speed diesel and helps boost revenue outside the tax system.
However, higher levy collections can also increase pressure on consumers and businesses. Petroleum costs affect transport expenses and can also add to inflation when fuel prices rise.
The latest figures show how important the petroleum levy has become to the government’s fiscal strategy. At the same time, meeting the Rs1.676 trillion target could keep petroleum taxation under close watch during FY2026-27.
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