The Pakistani government has announced a target to collect Rs 1.676 trillion from the petroleum levy during the 2026‑27 fiscal year, according to a written reply by Energy Minister Ali Pervaiz Malik to the National Assembly.
The projected revenue is based on applying an average levy of Rs 80 per litre to both petrol and high‑speed diesel sold across the country. Officials say the calculation assumes current consumption trends will hold steady over the next fiscal year, allowing the levy to generate a predictable stream of income.
The levy is positioned as a key component of the administration’s broader fiscal consolidation strategy, aimed at widening the non‑tax revenue base to reduce reliance on traditional tax collection. By earmarking these funds, the government hopes to narrow the budget deficit while still ensuring uninterrupted fuel supply for households, transport operators and industry.
Analysts note that achieving the Rs 1.676 trillion goal will depend largely on stable international oil prices and domestic demand patterns; any significant shift in either direction could alter the actual intake. The move also comes amid ongoing debates over fuel pricing subsidies, with policymakers insisting that the levy will not be passed on directly to consumers at the pump, though market observers warn that indirect effects on inflation remain a possibility.
If realized, the levy proceeds would represent one of the largest single‑source revenue inflows for the federal budget in recent years, underscoring the government’s emphasis on leveraging the energy sector to meet its financial targets for FY27.