The federal government collected a record-high Petroleum Levy of Rs1,042.41 billion during the first nine months of 2025. This marks a 29 percent increase compared to the same period in 2024.
Official data shows the revenue from Petroleum Levy between January and September 2025 rose by Rs234.27 billion compared to last year. The total collection was Rs1,042.41 billion, up from Rs808.14 billion during the same period in 2024.
The collection in the first quarter (January-March) amounted to Rs284.43 billion, while the second quarter (April-June) saw Rs386.37 billion. The third quarter (July-September) contributed Rs371.61 billion, reflecting steady growth. Additionally, Rs10.19 billion was collected as a climate support levy during the first three months of fiscal year 2025-26.
To meet IMF requirements, the federal government introduced a carbon levy on petrol and high-speed diesel in the ongoing fiscal year. The government aims to achieve the highest ever Petroleum Levy collection of Rs1,468.395 billion for FY 2025-26, surpassing the Rs1,220.213 billion collected in FY 2024-25.
The maximum Petroleum Levy was raised from Rs60 per litre to Rs70 per litre in March 2025. Further increases followed in April, bringing petrol to Rs78.02 per litre and high-speed diesel to Rs77.01 per litre. As of now, the government charges Rs79.62 per litre on petrol and Rs75.41 per litre on HSD. A separate climate support levy of Rs2.50 per litre is also applied to both fuels.
Analysts say the rising Petroleum Levy revenue reflects government efforts to meet fiscal targets and international obligations. This revenue is crucial for balancing the federal budget and funding development projects.
The federal government’s focus on Petroleum Levy collection underscores its reliance on energy taxes to support fiscal stability amid growing economic challenges.
In other news read more about: Petroleum Levy Hiked Despite Falling Global Oil Prices
