Citizens in Pakistan are facing a growing financial burden as petroleum levy collections have reached historic levels, according to new official documents.
Fresh data released by the Ministry of Finance reveals that during the first half of fiscal year 2025–26 (July–December 2025), the government collected Rs 822.93 billion in petroleum levy — the highest ever amount recorded in any six-month period in the country’s history.
📊 Massive Year-on-Year Increase
The figures show a sharp rise compared to the same period last year.
| Period | Petroleum Levy Collection |
|---|---|
| July–Dec 2024 | Rs 549.41 billion |
| July–Dec 2025 | Rs 822.93 billion |
This represents an increase of Rs 273.51 billion on a year-on-year basis, highlighting how fuel-based taxation has become a major revenue source for the government.
🎯 Annual Target for FY 2025–26
The federal government has set a petroleum levy collection target of Rs 1,468.39 billion for the current fiscal year.
With more than half the target already achieved in just six months, the full-year goal appears within reach if the current pace continues.
📈 Comparison With Previous Years
| Fiscal Year | Total Petroleum Levy Collection |
|---|---|
| 2022–23 | Rs 580 billion |
| 2023–24 | Rs 1,019 billion |
| 2024–25 | Rs 1,220.21 billion |
| 2025–26 (first 6 months only) | Rs 822.93 billion |
The data shows that petroleum levy revenue has nearly doubled within three years.
What This Means for the Public
Petroleum levy is a charge included in fuel prices, meaning its impact spreads across the entire economy. Higher levy rates directly influence:
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Transportation costs
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Prices of essential goods
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Industrial production expenses
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Overall inflation levels
While the levy boosts government revenue, economic analysts say the burden ultimately falls on ordinary citizens already coping with high living costs.
