The federal government of Pakistan collected a record Rs 822.93 billion in petroleum development levy (PDL) during the first half of the fiscal year 2025-26 (July to December 2025). This marks the highest-ever collection for any six-month period in the country’s history and represents a sharp increase from the previous year.
Record Revenue Boost
Official figures from the Ministry of Finance show that PDL receipts reached Rs 822.93 billion in the July-December period of FY2025-26. This is up by Rs 273.51 billion compared to the same months in the prior fiscal year, when collections stood at Rs 549.41 billion.
The surge has helped strengthen non-tax revenue streams for the government at a time when fiscal targets remain challenging. For the full fiscal year 2025-26, the government has set an ambitious PDL target of around Rs 1,468 billion, well above the Rs 1,220 billion collected in FY2024-25.
In addition, the government gathered Rs 25.48 billion through the carbon levy (also known as climate support levy) on petroleum products during these six months.
Recent Adjustments to Levy Rates
The government raised the petroleum levy in recent months to support revenue goals. Last month, it increased the levy on petrol by Rs 4.65 per litre, taking it to Rs 84.27 per litre. For high-speed diesel (HSD), the levy went up by Rs 0.80 per litre to Rs 76.21 per litre.
These changes came amid efforts to meet budgetary requirements, including commitments under international programs. Note that levy rates can vary slightly with fortnightly price reviews, and current effective rates may reflect minor adjustments since then (as per OGRA notifications).
Factors Behind the Increase
The higher collections stem from a combination of raised levy rates per litre and measures to curb fuel smuggling, which have improved the legal supply chain and boosted reported sales volumes. While consumer prices for petrol and diesel have seen fluctuations due to global oil trends, the levy component has remained a key non-tax revenue source.
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No immediate official comments were available from the Finance Ministry or FBR on the latest figures, but the data highlights the growing reliance on petroleum-related charges to support public finances.
