Here’s How Much Money Govt Will Earn From Petrol Sales in May

Former finance minister Miftah Ismail today on X posted possibly the government’s original blueprint to earn around Rs. 180 billion in additional taxes, duties, and levies from petrol and diesel sales this month following the latest fuel bomb.

The Petroleum Division increased petrol prices by Rs. 6.51 per litre and diesel prices by Rs. 19.39 per litre to just under Rs. 400 per litre.

Miftah acknowledged that the government reduced the petroleum levy on petrol by Rs. 3.88 but added a Rs. 28.69 per litre levy on diesel. He said the overall tax burden on consumers remains heavy, with roughly Rs. 120 per litre being collected in taxes and duties on petrol and around Rs. 60 per litre on diesel.

On this basis, he estimated that total collections from fuel-related taxes could reach Rs. 180 billion in a single month.

He further criticised government spending priorities, alleging that such revenues are being used for high-cost discretionary expenditures and politically driven development allocations, including expensive infrastructure projects and constituency development funds.

The Prime Minister on Thursday night sanctioned an increase of Rs. 19.39 per litre in the price of diesel and Rs. 6.51 per litre for petrol. Diesel is now at Rs. 399.58 per litre and petrol Rs. 399.86 per litre.