ISLAMABAD – The incumbent government’s collection of Rs2.725 trillion (or approximately $9.8 billion) on account of petroleum levy has surpassed the combined Rs2,340 billion ($8.4 billion) value of Pakistan’s two ongoing IMF loan programmes. The federal government collected a massive Rs2.725 trillion in petroleum levy on various petroleum products in two years, from April 2024 to March 2026, while the total amount of both IMF loan programmes during this period is approximately Rs2.340 trillion ($8.4 billion) at current exchange rates, official data revealed.
For the ongoing FY2025-26, the government plans for the highest ever petroleum levy collection in the country’s history and has set a target of Rs1,468.395 billion for the collection of petroleum levy for the ongoing FY2025-26. The government has collected over Rs1,205 billion in the first 9 months of the ongoing fiscal year, compared to Rs1,220.21 billion collected in the 12 months period of the previous fiscal year 2024-25. Similarly, in April to June quarter of the FY2023-24, petroleum levy of Rs299.63 billion was collected.
Pakistan is currently in two loan programmes with IMF including a $7 billion Extended Fund Facility and a $1.4 billion Climate Financing Programme. Around $4.8 billion has been received so far, which is equivalent to approximately Rs1,337 billion at current exchange rate. Besides, the government also collected Rs37.27 billion on account of carbon levy. Notably, on IMF demand, Pakistan has imposed Rs2.5 per liter climate support levy on petrol and diesel. The petroleum levy is a non-tax revenue that goes entirely to the federal government, while 57.5% of FBR’s tax revenue is transferred to provinces per NFC Award. During the FY2024-25, the government had raised the maximum petroleum levy from Rs60 per litre to Rs70 in the finance bill. However, till March 15, 2025, the government was charging a levy of Rs60 per litre on petrol and high speed diesel.
The levy on both petrol and HSD was increased by Rs10 per litre to Rs70 per liter from March 16, 2025. Again on April 15, 2025, the government had enhanced the petroleum levy on petrol by Rs8.02 per litre and Rs7.01 per litre on HSD, taking it to Rs78.02 per litre and Rs77.01 per litre, respectively. Similarly, for the second fortnight of November, 2025, the government had further increased petroleum levy on petrol, while it was reduced a bit on the HSD. The government had further increased petroleum levy on petrol by Rs4.65 per litre to Rs 84.27 and on HSD by Rs 0.80/litre to Rs 76.21 in January 2026. Again on March 15, 2026, the federal government had increased the petroleum levy on petrol by Rs20.97 per litre, raising it to Rs105.37 per litre from the previous Rs84.40 per litre. On the other hand, petroleum levy on HSD was reduced by Rs20.97 per litre from Rs76.21 per litre to Rs55.24 per litre.
On April 2, 2026, the government had increased the petroleum levy on petrol by Rs55.24 per litre, raising it to 160.61 per litre from the previous Rs105.37 per litre. However, after a day the government had slashed the petroleum levy on petrol by Rs80 per litre and reduced it to Rs 80.61 per liter. On May 8, the government had once again increased Petroleum levy on petrol to highest ever Rs117.05 per liter, however, during the next revision it was reduced to Rs108.17 per liter.
