Pakistan is expected to collect Rs1,468 billion from the petroleum levy in the current fiscal year, according to an IMF report. Citizens are already facing a heavy financial burden from the levy, which the government plans to increase annually over the next few years. The levy applies to all petroleum products, including petrol, diesel, and kerosene, significantly affecting transport and household expenses.
The report projects that petroleum levy collections will rise to Rs1,638 billion in the next fiscal year and Rs1,787 billion in 2027-28. By 2028-29, collections are estimated at Rs1,989 billion, reaching Rs2,212 billion in 2029-30, reflecting a steady upward trend in government reliance on this revenue source.
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So far, the government has collected over Rs650 billion in the first five and a half months of the current fiscal year. The levy continues to add pressure on consumers as global oil prices and domestic energy demands fluctuate, influencing transport costs and the overall cost of goods.
The IMF report highlights that petroleum levy revenues have become a key component of Pakistan’s fiscal planning, contributing significantly to budgetary needs. Annual increases in the levy are expected to provide funds for infrastructure projects, subsidies, and debt servicing.
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Economists and citizens have expressed concerns over the rising burden, warning that continuous increases in petroleum levies could drive inflation, raise transport costs, and impact the affordability of basic goods across the country.