The federal government collected Rs. 220 billion through the petroleum levy during the first two months of FY2026-27 and has set a target of Rs. 1.676 trillion for the entire fiscal year.

The collection during July and August represents a significant contribution towards the government’s annual revenue target from petroleum products, according to a media report.

In the previous fiscal year, the government collected Rs. 1.567 trillion through the petroleum levy, exceeding its initial target of Rs. 1.468 trillion by nearly Rs. 100 billion.

For FY2026-27, the government has increased its collection target to Rs. 1.676 trillion, reflecting its plan to generate more revenue through the levy.

The petroleum levy is imposed on fuel products, including petrol and diesel, and contributes to federal government revenues. Its collection has remained a subject of public and political criticism because of its impact on fuel costs.