The federal government collected Rs220 billion through the petroleum levy during the first two months of fiscal year 2026-27 as talks continue over possible relief in fuel-related charges.

Govt Collects Rs220bn Through Petroleum Levy in Two Months

Rs80 Per Litre Petroleum Levy Charged on Petrol and Diesel

By News Desk On Nov 10, 2026

ISLAMABAD: (Finance Reporter) – The federal government collected Rs220 billion through the petroleum levy during the first two months of fiscal year 2026-27, as negotiations continue with Jamaat-e-Islami (JI) over demands to reduce the financial burden of the levy on consumers.

However, the government’s budgetary commitments under the International Monetary Fund‘s (IMF) $7 billion Extended Fund Facility (EFF) leave limited room for reducing the levy at this stage, according to The News.

It remains uncertain how the government will respond to JI’s demand for rationalising petroleum levy rates. Rising fuel prices have also contributed to inflation, with the Consumer Price Index (CPI)-based inflation rate remaining close to double digits during the current fiscal year.

In addition to the petroleum levy, the government collected Rs27.5 billion through the Climate Support Levy, also known as the Carbon Levy, during July and August. The New Energy Vehicle (NEV) Adoption Levy generated another Rs7.225 billion over the same period.

Official figures show that the government has set a petroleum levy collection target of Rs1.676 trillion for fiscal year 2026-27, compared with the initial budget estimate of Rs1.468 trillion for the previous fiscal year.

However, actual petroleum levy receipts during 2025-26, which ended on June 30, 2026, reached Rs1.567 trillion, exceeding the original target by nearly Rs100 billion.

Under the current fiscal plan, the government intends to increase petroleum levy collections by Rs109 billion during 2026-27, taking the total to Rs1.676 trillion by June 30, 2027.

The federal government is currently imposing a petroleum levy of Rs80 per litre on both petrol and diesel. Parliament has authorised the government to revise the levy rate without requiring additional parliamentary approval.

Meanwhile, the government has set a Climate Support Levy collection target of Rs50 billion for the current fiscal year, broadly matching the Rs50.159 billion collected in 2025-26. Official data show that Rs27.5 billion was generated under this head during the first two months.

The NEV Adoption Levy is expected to generate Rs22.481 billion in 2026-27, compared with the previous year’s budgeted target of Rs10 billion. Collections from this levy stood at Rs7.225 billion in July and August.