The Petroleum Ministry has expressed reservations over the International Monetary Fund’s demand for an increase in the petroleum levy.
For the Budget 2026–27, the Ministry of Petroleum has forwarded its proposals to the Ministry of Finance while flagging concerns over the IMF levy targets.
According to sources, the Petroleum Ministry has proposed a levy target of Rs1,000 billion.
The IMF has set a proposed target of Rs1,727 billion for the next financial year, compared with Rs1,313 billion in the current year, reflecting an increase of Rs414 billion.
Sources further state that the Ministry of Petroleum has proposed setting the levy at up to Rs50 per litre, while the government currently charges Rs108 per litre on petrol and Rs52 per litre on diesel.
The IMF has recommended an 18 per cent increase in the petroleum levy target, with projections suggesting it may rise to Rs100 per litre in the next financial year. A revised target of Rs1,730 billion has also been suggested.
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