ISLAMABAD (Web Desk) - The Ministry of Petroleum has expressed reservations over the International Monetary Fund’s demand for an increase in petroleum levy targets for the upcoming fiscal year, according to official sources.
The ministry has forwarded its budget proposals for 2026-27 to the Finance Ministry while raising concerns regarding the levy targets suggested by the IMF.
Sources said the Petroleum Ministry has proposed setting the petroleum levy collection target at Rs 1,000 billion, while the levy target for the current fiscal year had been fixed at Rs 1,313 billion.
However, the IMF has reportedly demanded a significantly higher target of Rs 1,727 billion for the next fiscal year, reflecting an increase of around Rs 414 billion compared to the previous target.
According to sources, the Petroleum Ministry is in favor of keeping the levy capped at Rs 50 per liter. At present, the government is collecting around Rs 108 per liter on petrol and Rs 52 per liter on diesel in the form of petroleum levy and taxes.
Sources further stated that the IMF has recommended an 18 percent increase in petroleum levy targets for the upcoming financial year. Under the proposed framework, the petroleum levy could potentially rise to as much as Rs 100 per liter.
Officials said a proposal is under consideration to set the overall petroleum levy target at nearly Rs 1,730 billion for the next fiscal year.