Petroleum levy receipts: Govt sets Rs1.676trn target for FY27

Petroleum levy receipts: Govt sets Rs1.676trn target for FY27.

Key points

• On July 1, the levy stood at Rs66.64 per litre on petrol and Rs79.54 on HSD.
• While the levy on HSD remained at Rs70.82 per litre, he remarked that the levy on petrol reached the budgeted level of Rs80 per litre on July 11.
• Govt increases petrol cost by Rs3.81, diesel's by Rs3.59 per litre.
• In a written response to the Lower House of the Parliament, the minister remarked the petroleum levy.

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ISLAMABAD: The federal administration has set a target of Rs1.676 trillion in petroleum levy receipts for the fiscal year 2026-27, based on an average levy of Rs80 per litre on petrol and High-Speed Diesel (HSD), Minister for Energy (Petroleum Division) Ali Pervaiz Malik informed the National Assembly on Friday.

In a written response to the Lower House of the Parliament, the minister remarked the petroleum levy. It had been reduced during a period of exceptional volatility in international oil markets to provide relief to consumers, was being restored in phases in line with the approved budgetary target.

The levy on petrol (MS) and HSD has undergone a number of revisions since the start of the current fiscal year.

On July 1, the levy stood at Rs66.64 per litre on petrol and Rs79.54 on HSD. It was revised to Rs64.14 and Rs77.04, respectively, on July 2, before being rose to Rs70.36 on petrol and Rs70.82 on HSD on July 4, the Minister stated.

While the levy on HSD remained at Rs70.82 per litre, he remarked that the levy on petrol reached the budgeted level of Rs80 per litre on July 11. "The administration subsequently climbed the HSD levy in phases, reaching Rs72.26 on August 6, Rs73.47 on August 7, Rs74.28 on August 8, Rs76.28 on August 12, Rs77.28 on August 13 and Rs78.28 on August 14. As of August 20, the petroleum levy on both petrol and HSD stood at Rs80 per litre, " he remarked. Overall, the levy on petrol rose by Rs13.36 per litre between July 1 and August 20.

Notably, the minister remarked no separate assessment had been carried out by the Petroleum Division to determine the impact of the levy on specific categories of consumers.

He explained that petroleum levy collection targets were part of the approved federal budget and were linked to fiscal commitments created with international financial institutions.

Responding to a question regarding reducing the levy to provide relief to consumers, Ali Pervaiz stated the levy was a fiscal revenue measure determined within the approved budgetary framework and existing fiscal commitments.

"Any reduction is considered by the government subject to available fiscal space, commitments with international financial institutions, revenue requirements and international petroleum market conditions, " he remarked.

For context, the minister, nevertheless, stated the administration passes on the benefit of declining international oil costs to consumers whenever feasible, suggesting that any future reduction in domestic fuel costs would depend on international market conditions and the government's fiscal position. Govt increases petrol cost by Rs3.81, diesel's by Rs3.59 per litre. Terrorism devours over 90, 000 lives and inflicts USD150bn losses. Nepra directs PITC to update pending net-metering connections. Aurangzeb, SRF team discuss investment opportunities. Aurangzeb, SG ICCD discuss halal markets. Pakistan, Google sign MoU to deepen digital skills cooperation. Retail deposit mobilization: SBP urges banks to reorient their business models.

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Taken together, the developments around petroleum levy receipts: Govt sets Rs1.676trn target for FY27 point to a situation that is still moving, and the coming days should bring more clarity.