ISLAMABAD: The federal government has set an ambitious target to collect Rs1.28 trillion through the petroleum levy for the fiscal year 2024-25, marking a 47.4% increase over the previous year’s goal.
In the outgoing fiscal year, the government collected Rs960 billion from the petroleum levy, surpassing the original target of Rs869 billion. The upcoming fiscal year projects an additional Rs321 billion in collections.
Furthermore, Rs28 billion is expected to be collected from the levy on crude oil, matching the amount collected this year despite an original target of Rs35 billion. A newly introduced levy on gas is projected to generate Rs400 million, having collected Rs220 million in the current year despite not being part of the original budget.
Miscellaneous receipts from oil and gas companies are anticipated to generate Rs1.52 trillion in 2024-25, up from the revised collection of Rs1.19 trillion this year, which exceeded the original estimate of Rs1.14 trillion.
The Gas Infrastructure Development Cess (GIDC) collection target remains at Rs2.5 billion for 2024-25. The initial target for 2023-24 was Rs40 billion, but the actual collection amounted to only Rs2.5 billion.
For the Natural Gas Development Surcharge (GDS), representing the difference between the prescribed and sale price of gas allocated to provinces, the government projects Rs25.61 billion for the next fiscal year. The original estimate for 2023-24 was Rs40 billion, but actual collections were Rs27.16 billion.
The government also plans to collect Rs3.53 billion through the petroleum levy on Liquefied Petroleum Gas (LPG) in 2024-25, slightly up from the Rs3.51 billion collected this year.
The budget for 2024-25 includes Rs25 billion to be retained as a discount on local crude oil prices, consistent with the revised estimate for this year but up from the original budget of Rs20 billion.
Additionally, the budget proposes a decrease in the royalty on crude oil and an increase in the royalty on natural gas for provinces. The royalty on crude oil is set at Rs58.65 billion, while the royalty on natural gas is budgeted at Rs103.75 billion for 2024-25.
