Petroleum Levy Hike Expected to Burden Public in Upcoming Budget

The public may face a significant inflationary shock as the government plans to increase petroleum levy collections in the upcoming fiscal year’s budget. According to sources, the government has presented a proposal to the International Monetary Fund (IMF) outlining record-high revenue targets through petroleum levy.

For the fiscal year 2025–26, petroleum levy collections are estimated at **Rs. 1,311 billion**, marking an increase of **Rs. 194 billion** over the current fiscal year’s target of **Rs. 1,117 billion**.

This potential hike, if implemented, would directly impact fuel prices, further intensifying the financial burden on citizens already grappling with inflation. Economists warn that such measures, while aimed at boosting government revenues, could have a ripple effect on the cost of transportation, goods, and services across the country.

The proposal is part of the government’s broader strategy to meet fiscal targets under IMF guidelines, but it is expected to trigger widespread public concern over rising living costs.