The federal government is considering another increase in taxes on petrol as part of efforts to strengthen revenue collection and comply with commitments made under the International Monetary Fund (IMF) program, officials familiar with the matter said.

Sources within the Ministry of Finance indicated that while petroleum levy revenues are already projected to surpass the annual target of Rs. 1.468 trillion, policymakers are reviewing options to further raise the levy in the coming months to support fiscal consolidation.

The discussions follow a recent decision to increase the petroleum levy on petrol by roughly Rs. 27 per litre, pushing the total levy to more than Rs. 107 per litre. The adjustment formed part of broader fiscal measures linked to Pakistan’s ongoing IMF engagement.

According to officials, the IMF has consistently encouraged Pakistan to phase out subsidies and rely more heavily on taxation mechanisms such as petroleum levies to stabilize public finances. The government has reportedly reaffirmed its commitment to maintaining strict fiscal discipline under the program.

Fuel prices in Pakistan have already climbed significantly in recent months amid global oil market volatility and regional geopolitical tensions. However, analysts note that a substantial portion of domestic price increases has stemmed from higher taxation rather than changes in international oil prices.