Petroleum levy collection surges to Rs1.57tr in FY26

Business Recorder reported that the government's Petroleum Levy collection rose to Rs1.567 trillion in fiscal year 2025-26, well above the target of Rs1.498 trillion after its upward revision. That figure beat the revised goal by around Rs69 billion. Finance Division fiscal operations data also showed the haul was about Rs99 billion above the original Rs1.468 trillion target.

Looking ahead, the government has set a Petroleum Levy target of Rs1.676 trillion for fiscal 2026-27, roughly 7 percent above the FY2025-26 result and about Rs109 billion more than that collection. Meeting the new goal means collecting that extra sum during the year. The report also notes that the state keeps relying heavily on petroleum products, with consumers bearing the cost through levies.

The levy applies to petroleum products including petrol and high-speed diesel and has become a growing source of non-tax revenue. Even so, the higher target has been set despite persistent worries about prices, transport costs and inflation. Higher collections, the report adds, also raise concerns about the burden on consumers and businesses.