Govt may face shortfall in current FY’s budgeted PL target

ISLAMABAD: The government may face a shortfall in the current fiscal year’s budgeted petroleum levy (PL) target, as concerns grow that the US may carry out a military attack on key Middle Eastern producer Iran, which could disrupt supply from the region.

In the current fiscal year 2025-26, the government envisaged generating Rs 1.4 trillion from the PL. In the first half (July-December), the government fetched Rs 850 billion or 57 percent of the total budgeted target.

In the last two weeks, the price of Brent has increased by 3.2 percent from USD 68.18 to USD 70.37 per bbl and Arblight also increased by 2.7 percent from USD 67.39 to USD 69.18 per bbl. WTI has also increased by 2.3 percent from USD 63.64 to USD 65.07 per bbl.

According to Arif Habib Limited, petroleum product prices may rise effective from 1st March 2026 if approved by the government. Oil and Gas Regulatory Authority (OGRA) will send its recommendations today to Petroleum Division and final announcement will be made after approval of Prime Minister.

The rate of petrol is expected to increase by Rs 5.13 per litre to Rs 263.30 per litre. The rate on high-speed diesel (HSD) is expected to increase by Rs 6.8 per litre to Rs 282.50 per litre, effective 1st March 2026.

The government kept the petroleum levy unchanged at Rs 84.40 per litre on petrol and Rs 76.21 per lire on high-speed diesel (HSD) for current fortnight ending on February 28. In addition to this, CSL is also being charged at Rs 2.50 per litre.

In the previous fortnight, the federal government increased the HSD price to Rs 275.7 per litre and Rs 258.17 per litre for petrol.

Copyright Business Recorder, 2026