Pakistanis are bracing for a significant hike in the petroleum levy as the government prepares to ramp up collections by an additional Rs. 194 billion in the upcoming fiscal year 2025-26. The move is part of Islamabad’s ongoing commitments to the International Monetary Fund (IMF), according to official sources.

For FY26, the government has set an ambitious petroleum levy collection target of Rs. 1,311 billion—a sharp increase from the current year’s target of Rs. 1,117 billion. This record-setting target means consumers will face even higher prices at the pump, with the additional burden passed directly onto the public.

Data shows that from July to March of the current fiscal year, petroleum levy collections reached Rs. 833.85 billion. In the previous fiscal year (2023-24), the total collection stood at Rs. 1,019 billion, while FY 2022-23 saw collections of Rs. 580 billion. The projected figure for FY26 will mark the highest petroleum levy collection in Pakistan’s history.

Currently, the petroleum levy is already at unprecedented levels, with consumers paying Rs. 78.02 per liter on petrol and Rs. 77.01 per liter on high-speed diesel. The planned increase is expected to further intensify the financial pressure on citizens, who are already grappling with high fuel costs.