Pakistan sets Rs1.676 trillion petroleum levy target for FY2026-27

The Pakistani federal government has established a petroleum levy collection target of Rs1.676 trillion for the 2026-27 fiscal year. This target is based on an average levy of Rs80 per litre for both petrol and high-speed diesel (HSD).

Minister for Energy (Petroleum Division) Ali Pervaiz Malik stated in a response to the National Assembly that while levies were previously reduced to provide consumer relief during international market volatility, they are being restored in phases to meet budgetary goals. The minister noted that these collection targets are integral to the federal budget and are linked to the country’s fiscal commitments with international financial institutions.

The proposed target represents an increase of approximately 12 percent compared to the revised target of Rs1.498 trillion for the previous fiscal year. The levy is collected from consumers through fuel prices at the pump, serving as a significant revenue source outside the regular tax system.