The federal government has set a target of collecting Rs1.676 trillion through the petroleum levy during the 2026-27 fiscal year, with the levy on both petrol and High Speed Diesel (HSD) fixed at an average of Rs80 per litre.
The details were shared by Minister for Energy (Petroleum Division) Ali Pervaiz Malik in a written reply to the National Assembly on Friday.
The minister said the levy was temporarily lowered when global oil prices became highly volatile to reduce the burden on consumers. However, it has since been restored in stages to meet the revenue target approved in the federal budget.
According to the minister, the levy on July 1 stood at Rs66.64 per litre on petrol and Rs79.54 on HSD. It was revised the following day before rising again on July 4. The levy on petrol reached the budgeted Rs80 per litre on July 11, while the HSD levy continued to increase gradually over the following weeks.
He said the levy on diesel was raised through several revisions before also reaching Rs80 per litre on August 20. Between July 1 and August 20, the levy on petrol increased by Rs13.36 per litre.
Ali Pervaiz Malik told lawmakers that the Petroleum Division had not conducted a separate assessment of how the levy affects different groups of consumers.
He said petroleum levy targets form part of the federal budget and are linked to the country’s broader fiscal commitments with international financial institutions.
Responding to a question on whether the government could reduce the levy to provide relief, the minister said any such decision would depend on available fiscal space, revenue requirements, commitments with international lenders and trends in global oil prices.
He added that the government passes on the benefit of lower international petroleum prices to consumers whenever possible. Any future cut in domestic fuel prices or the petroleum levy, he said, would depend on market conditions as well as the government’s financial position.
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