The federal government is set to raise its petroleum levy collection target to Rs1.727 trillion for the next financial year 2026-27, according to well-informed sources cited by ARY News.
The proposed new target represents an increase of Rs292 billion over the benchmark of the current fiscal year, and Rs157 billion above the expected actual collection for the ongoing year.
The government is on track to comfortably surpass the petroleum levy target of Rs1.468 trillion for the current fiscal year, with strong collections recorded in the first 11 months.
From July to May, petroleum levy collections reached Rs1.43 trillion, reflecting a near-consistent performance across the 11-month period of the current fiscal year.
An additional Rs140 billion is expected to be collected in June alone, which could push total fiscal year receipts to approximately Rs1.57 trillion by the end of the year.
That projected year-end total of Rs1.57 trillion would be roughly Rs100 billion above the original target of Rs1.468 trillion set at the start of the current fiscal year.
Petroleum levy revenues recorded from July to May were nearly Rs600 billion higher than collections during the same period of the previous fiscal year, highlighting significant year-on-year growth.
Monthly petroleum levy collections (FY2024–25)
| Month | Petroleum Levy Collection (Rs Billion) |
|---|---|
| July | 157.00 |
| August | 103.46 |
| September | 112.85 |
| October | 143.48 |
| November | 148.36 |
| December | 162.46 |
| January | 108.76 |
| February | 120.39 |
| March | 139.48 |
| April | 146.00 |
| May | 87.50 |
| Total (Jul–May) | 1,429.74 |
Over the July–May period, more than Rs686.52 billion in levy revenue was generated specifically from imported petrol and diesel sold across the retail fuel network of country.
A further Rs753.54 billion was collected from petroleum products refined domestically from imported crude oil, making it the larger of the two revenue streams during this period.
Policymakers are set to unveil the next federal budget shortly, with petroleum levy revenues now forming a growing and central pillar of the overall government revenue framework.
