The federal government has collected about Rs4,400 billion through the petroleum levy over the past four fiscal years, roughly Rs227 billion more than the combined target for that period, according to official data.
The petroleum levy is a federal tax built into pump prices of petrol and diesel. Official numbers show the take has climbed steadily year after year, making the levy a major source of government revenue even as households keep paying high fuel-related charges.
How collections rose year by year
Collections stood at Rs542 billion in FY2022-23 and nearly doubled to Rs960 billion in FY2023-24. In FY2024-25 the government took in Rs1,161 billion. In FY2025-26 collections reached Rs1,567 billion, about Rs99 billion above that year’s target.
For the current fiscal year the petroleum levy target is Rs1,676 billion. If that figure is met, five-year collections would total about Rs6,076 billion.
What drivers still pay at the pump
Alongside the levy, consumers face other taxes, duties and margins on fuel. Official data put those combined charges—including the petroleum levy—at Rs110.78 per litre on petrol and Rs107.55 per litre on high-speed diesel.
That means a large share of every litre’s retail price goes to the state and the supply chain rather than to the crude oil itself. The government has also postponed any decision to reduce the petroleum levy until the next federal budget, leaving the tax in place as a key revenue tool for now.
Timeline: what has happened so far
- FY2022-23: Petroleum levy collections were Rs542 billion.
- FY2023-24: Collections rose to Rs960 billion.
- FY2024-25: The levy brought in Rs1,161 billion.
- FY2025-26: Collections reached Rs1,567 billion, Rs99 billion above that year’s target.
- Current fiscal year: The collection target is set at Rs1,676 billion; a levy cut is deferred to the next budget.
Aasan alfaaz mein
Sarkar ne pichle char saalon mein petroleum levy se lagbhag 4,400 arab rupay ikattha kiye hain, target se zyada. Petrol aur diesel ke daam mein yeh tax aur doosre charges shamil hain—petrol par mil kar 110.78 rupay litay. Levy kam karne ka faisla agli budget tak tal diya gaya hai, is liye pump ke daam abhi is tax se jure rahenge.
