Pakistan, June 14 -- The federal government of Pakistan may miss its target to collect Rs 1,161 billion in petroleum levy this fiscal year. The recent surge in global oil prices, triggered by the Israel-Iran conflict, has pushed up fuel costs both internationally and domestically. This increase threatens the government's expected revenue from fuel taxes.

After Israel's attacks on Iran, petrol prices jumped by $1.98 per barrel, while diesel prices rose by $2.54 per barrel. As a result, petrol prices in Pakistan are expected to rise by Rs 4.38 per litre, and diesel by Rs 5.02 per litre starting June 16. Experts warn these higher prices could reduce fuel consumption and lower government revenue from petroleum levies.

By March 2025, Pakista...