The federal government plans to collect Rs. 1.676 trillion through the petroleum Levy during fiscal year 2026-27.
Energy Minister for Petroleum Division Ali Pervaiz Malik disclosed the target in a written response to the National Assembly on Friday.
The government calculated its budget target using an average petroleum levy of Rs. 80 per litre. The rate applies to petrol and High-Speed Diesel (HSD).
Petrol Levy Reaches Rs. 80 Per Litre
The government changed petroleum levy rates several times during July and August. These adjustments came amid volatility in international oil markets.
On July 1, the levy on petrol stood at Rs. 66.64 per litre. The government reduced it to Rs. 64.14 on July 2. However, the rate increased to Rs. 70.36 per litre on July 4. It was later raised to Rs. 80 on July 11.
The petrol levy has remained at Rs. 80 per litre since that increase. Compared with July 1, the petrol levy has increased by Rs. 13.36 per litre.
HSD Levy Also Increased Gradually
The Levy on High-Speed Diesel followed a different pattern during the same period.
It stood at Rs. 79.54 per litre on July 1. The government lowered it to Rs. 77.04 on July 2. The rate was further reduced to Rs. 70.82 per litre on July 4.
However, authorities later began increasing the HSD levy in stages. It reached Rs. 72.26 per litre on August 6. The rate increased to Rs. 73.47 on August 7. It then climbed to Rs. 74.28 on August 8.
Further increases took the rate to Rs. 76.28 on August 12. It reached Rs. 77.28 on August 13. The HSD levy rose to Rs. 78.28 on August 14. By August 20, it had reached Rs. 80 per litre.
Revenue Target Linked to Fiscal Commitments
Malik said the Rs. 1.676 trillion target is included in the federal budget.
He added that the target is also linked with Pakistan’s fiscal commitments to international financial institutions. However, the Petroleum Division has not separately assessed how the Levy affects different groups of consumers.
The minister also explained the factors that could influence future reductions.
Any reduction would depend on available fiscal space and government revenue requirements. International oil prices would also play an important role.
Pakistan’s commitments with international financial institutions would also be considered before making changes.
The government says reductions in global oil prices are passed on to consumers whenever circumstances allow.
In other news read more about: Petrol and Diesel Prices Expected to Drop Up to Rs6 per Liter in December
Future changes in petroleum levy rates will therefore depend on several factors. These include global oil prices, revenue requirements and Pakistan’s overall fiscal position.
