According to a private television report, the government has set an annual petroleum levy collection target of Rs1.676 trillion for the current fiscal year, reflecting an increase over the previous year’s revenue.
The Rs220 billion collected during the first two months represents approximately 13.1 percent of the annual target, leaving Rs1.456 trillion to be collected during the remaining ten months.
During fiscal year 2025-26, petroleum levy collections exceeded the government’s initial budget estimates.
The government had originally projected petroleum levy revenue of Rs1.468 trillion. However, actual collections reached Rs1.567 trillion by the end of the fiscal year, exceeding the target by approximately Rs99 billion.
The new annual target of Rs1.676 trillion represents an increase of Rs109 billion compared with the previous fiscal year’s actual collections.
Economic analysts say petroleum levy revenue remains an important component of federal non-tax receipts. However, achieving the annual target will depend on fuel consumption, applicable levy rates and collection trends throughout the fiscal year.
The petroleum levy is imposed on petroleum products and contributes to the retail prices paid by consumers.
Meanwhile, political parties have raised concerns over the financial burden of petroleum-related taxes and levies on households and businesses, with protests reported against rising fuel costs.
The government’s petroleum levy collection strategy remains under scrutiny as consumers continue to face pressure from energy expenses and broader living costs.