ISLAMABAD  -  It is unlikely that the federal government will achieve the Petroleum Levy collection target of Rs1281 billion set for the ongoing fiscal year, despite a steep increase of 30 percent in Petroleum Levy on petrol and high speed diesel during the past less than two months.

The federal government has collected Petroleum Levy of Rs833.847 billion during the first nine months (July to March) of the ongoing fiscal year, official data reveals. With the current pace of Petroleum Levy Collection, the government will collect approximately Rs1200 billion against the budget target of Rs1281 billion for the ongoing fiscal year 2024-25, official source told The Nation.

The collection of Petroleum Levy has reached Rs833.847 billion from July to March period of the FY2024-25.

On average, Petroleum Levy of Rs92.66 billion per month was collected during the first nine months, and if the trend continues the government can collect approximately Rs1200 billion during the entire year, the source explained. No doubt, the government is on its way to collect the highest Petroleum Levy in the country’s history during the ongoing financial year, however it is unlikely to meet the target of Rs1281 billion, the source said. The Petroleum Levy collection has recorded an increase of Rs114.41 billion from July to March on an annual basis during 2024-25, the source said. The collection of Petroleum Levy from July to March of FY2023-24 was Rs719.592 billion.

To meet the Petroleum Levy collection target of Rs1281 billion during the FY2024-25, the government had raised the maximum Petroleum Levy from Rs60 per litre to Rs70 per litre in the finance bill of the ongoing fiscal year. However, till March 15, 2025, the government was charging a levy of Rs60 per liter on petrol and high speed diesel, however, it was increased by Rs10 per liter from March 16 to Rs70 per liter. Similarly, earlier there was minimal Re0.05 per liter Petroleum Levy on kerosene oil, however during the second fortnight of March the government levied Rs10.91 per liter PL on kerosene.

Again on April 15, the federal government had enhanced the Petroleum Levy on petrol by Rs8.02 per liter and HSD Rs7.01 per liter, taking it to Rs 78.02 per liter and Rs 77.01 per liter on both the products.

Now there are two possible ways to meet the PL target of the ongoing fiscal, either the sale of petroleum products goes up considerably during the last quarter  of the FY 2024-25, or the government further jacks up petroleum levy on petrol and HSD, the source argued.

Notably, in the fiscal year 2023-24, the collection of Petroleum Levy was Rs 1019 billion, which was higher than the revised PL target of Rs960 billion. In the financial year 2022-23, the collection of Petroleum Levy was Rs580 billion.