Government Collects Record Rs3.1 Trillion From Public in Petrol Levies

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ISLAMABAD: Pakistan’s federal government has collected a record Rs3.137 trillion in petroleum levies during roughly two and a half years, as consumers continue to shoulder a heavy burden from fuel-related taxes and elevated petrol and diesel prices.

According to official figures cited in media reports, petroleum levy collections under the current government have reached Rs3.137 trillion, marking an unprecedented level of revenue from fuel consumers.

The period has also seen sharp increases in domestic fuel prices. High-speed diesel, which was priced at Rs287.33 per litre on March 4, 2024, later climbed as high as Rs520.35 per litre, while petrol rose from Rs279.75 to a historic peak of Rs458.41 per litre. Recent market data confirms those record peaks, although prices have since eased significantly.

Official documents cited in the report show that the government collected around Rs1.567 trillion in petroleum levy during the 2025-26 fiscal year. More than Rs50 billion was reportedly collected separately through the climate support levy on petrol and diesel.

During the 2024-25 fiscal year, petroleum levy collections stood at about Rs1.22 trillion, while around Rs299.63 billion was collected between April and June 2024.

Fuel taxation remains a major component of retail prices. As of September 5, petrol was priced at Rs345.87 per litre and high-speed diesel at Rs378.05 per litre following the latest revision. Taxes and duties continue to account for a substantial portion of pump prices.

Earlier federal budget documents also showed petroleum development levy as one of the government’s largest non-tax revenue sources, underlining its growing importance for federal receipts.

The record collections come at a time when households and businesses remain sensitive to fuel costs, which influence transport fares, logistics expenses and the broader cost of living across Pakistan.