Former Finance Minister Miftah Ismail has said the Pakistani government could collect around Rs. 180 billion in taxes, duties, and levies from petrol and diesel sales this month. This comes after fresh price hikes announced on May 1, 2026.
Petrol price rose by Rs. 6.51 per litre to Rs. 399.86, while diesel increased sharply by Rs. 19.39 to Rs. 399.58 per litre. The government reduced the petroleum levy on petrol by Rs. 3.88 but added Rs. 28.69 on diesel.
Miftah pointed out that consumers still pay heavy taxes, about Rs. 120 per litre on petrol and Rs. 60 on diesel. He criticised the government’s spending, saying priorities seem more political than economic.
Fuel taxes are a major source of revenue for Pakistan. In the first ten months of the current fiscal year, petroleum levy collections already crossed Rs. 1.33 trillion. The government uses these funds to meet budget needs and IMF conditions.
However, high fuel prices increase transport and goods costs, adding to inflation and hurting common people’s daily lives. Many worry that such heavy taxation puts an extra burden on families and businesses while global oil prices remain high.
