ISLAMABAD – Starting July 1, 2025, Pakistani citizens may face the highest petroleum levy in the country’s history, as the government prepares to impose an additional burden of Rs194 billion in the upcoming fiscal year. This increase is part of the government’s target to collect Rs1,311 billion in petroleum levy during the 2025–26 financial year.
According to a report by the International Monetary Fund (IMF), this figure marks a sharp rise compared to the Rs1,117 billion estimated for the current fiscal year ending June 30. The hike reflects growing reliance on indirect taxation to meet revenue targets, a move that could weigh heavily on consumers already dealing with inflation.
Currently, the government is charging a levy of Rs78.02 per litre on petrol and Rs77.01 per litre on high-speed diesel. Despite these high rates, collections in the first nine months of the ongoing fiscal year (July 2024 to March 2025) have already reached Rs833.84 billion, indicating that the government is on track to meet its full-year goal.
The IMF report also highlighted the rising trend over recent years. In the previous fiscal year (2023–24), the total petroleum levy collection stood at Rs1,019 billion, while in 2022–23, the figure was Rs580 billion. These numbers show a consistent year-on-year increase in levy collections.
This steady increase suggests that petroleum levies are becoming a key source of revenue for the government. However, it also means that the cost is being shifted to the public, which could lead to more pressure on household budgets, especially as fuel prices remain volatile.
As the new fiscal year approaches, many are concerned that the additional Rs194 billion burden could impact daily life and transportation costs. While the government aims to meet IMF targets and stabilize its finances, citizens may feel the pinch more than ever at the petrol pump.