Petroleum levy receivables to hit record Rs1,311 billion

Key Highlights

• Record‑breaking projection: The federal government plans to collect Rs 1,311 billion in petroleum levy (called Petroleum Development Levy – PDL) during the fiscal year 2025‑26, marking the highest ever target in Pakistan's history suchtv.pkcustomstoday.media.

• Sharp increase from current year: This target is Rs 194 billion higher than the current FY 2024‑25 estimate of Rs 1,117 billion suchtv.pkcustomstoday.media.

• Rising trend in recent years:

  • FY 2023‑24: Rs 1,019 billion

  • FY 2022‑23: Rs 580 billion

  • FY 2024‑25 (July–March): Rs 833.8 billion already collected suchtv.pkcustomstoday.media.

• Current per‑litre levy rates: Petrol is currently subject to Rs 78.02/litre and high-speed diesel to Rs 77.01/litre suchtv.pkcustomstoday.media.

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📌 Why This Matters

1. Government revenue reliance: The rising PDL target reflects heavy dependence on indirect taxes to meet fiscal commitments—especially under pressure from the IMF customstoday.mediadailytimes.com.pk.

2. Consumer impact: Higher levy means steeper fuel costs, which will likely lead to increased inflation and elevated transportation expenses—putting pressure on households and businesses customstoday.mediadailytimes.com.pk.

3. IMF commitment: This hike is part of broader budget measures shown in the FY 2025‑26 budget (Rs 17,600 billion), where PDL is a key revenue component alongside taxes and duties 24newshd.tvsuchtv.pk.

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💡 Context & Insight

• Annual increase of Rs 194 billion mirrors a ~17% rise compared to the current year’s levy target.

• The persistent increase underlines a growing fiscal strategy that shifts costs to consumers via petroleum taxes—a method often criticized for fueling inflation and burdening low-income families.

• With Pakistan targeting macroeconomic stabilization—recently securing IMF support and reporting a fiscal surplus—these levy hikes help plug budget deficits faster and meet external obligations suchtv.pkhamariweb.com.

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What to Watch

• Fuel price changes: Given the levy increase, expect petrol and diesel prices to rise starting July 1, 2025, once FY 2025‑26 rates officially kick in dailytimes.com.pkcustomstoday.media.

• Budget debate: Stay tuned for parliamentary and IMF responses to the levy’s scale, especially any pushback related to economic fairness or cost-of-living concerns.

• Alternative policies: Consider whether downstream subsidies or relief measures are proposed to cushion consumers from fuel price shocks.

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✅ Bottom Line

The government’s FY 2025‑26 budget sets a historic petroleum levy target of Rs 1,311 billion, a record high and sharp Rs 194 billion jump from the current year, spotlighting Pakistan’s growing reliance on fuel taxes to meet revenue goals. While it helps bridge fiscal gaps, this strategy presents real-world consequences: inflation, consumer hardship, and broader economic impact—a trend worth following closely as July approaches.

Let me know if you’d like a deeper breakdown, historical comparison, or projections on how this could ripple through other sectors.